In a price-taker market, a higher economic profit: O indicates that other goods that could have been produced with the same resources are of higher value and firms should exit. O will be earned by producers in the long run than in the short run. is earned by the firms that set their price above the level set by other producers. Osignals additional resources to flow into the production of a good that has a high value to consumers relative to production costs.

In a price-taker market, a higher economic profit: O indicates that other goods that could have been produced with the same resources are of higher value and firms should exit. O will be earned by producers in the long run than in the short run. is earned by the firms that set their price above the level set by other producers. Osignals additional resources to flow into the production of a good that has a high value to consumers relative to production costs.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 10PA

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