multiple choice If a typical firm in a perfectly competitive industry is earning economic profits, then 1-all firms will continue to earn profits 2-new firms will enter in the long run causing market supply to decrease and market price to rise, increasing profits 3-new firms will enter in the long run causing market supply to increase and market price to fall, decreasing profits 4- the number of firms in the industry will remain constant in the long run
multiple choice If a typical firm in a perfectly competitive industry is earning economic profits, then 1-all firms will continue to earn profits 2-new firms will enter in the long run causing market supply to decrease and market price to rise, increasing profits 3-new firms will enter in the long run causing market supply to increase and market price to fall, decreasing profits 4- the number of firms in the industry will remain constant in the long run
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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multiple choice
If a typical firm in a
1-all firms will continue to earn profits
2-new firms will enter in the long run causing market supply to decrease and market
3-new firms will enter in the long run causing market supply to increase and market price to fall, decreasing profits
4- the number of firms in the industry will remain constant in the long run
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