Question 5 Of 2 Choose the answer that makes the statement correct. For firms in perfectly (purely) competitive markets, long-run economic profits are becau this market if profits are less than that and if profits are greater than that. enter exit exit enter shut down
Question 5 Of 2 Choose the answer that makes the statement correct. For firms in perfectly (purely) competitive markets, long-run economic profits are becau this market if profits are less than that and if profits are greater than that. enter exit exit enter shut down
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Question 5 of 20
Choose the answer that makes the statement correct.
For firms in perfectly (purely) competitive markets, long-run economic profits are [dropdown menu] because firms will [dropdown menu] this market if profits are less than that and [dropdown menu] if profits are greater than that.
Dropdown 1 options:
- zero
- positive
- negative
Dropdown 2 options:
- exit
- enter
Dropdown 3 options:
- exit
- enter
- shut down](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1b551779-a94f-4658-8ab9-cb1269496a60%2Fc03b9c40-2cf9-4227-ab65-fcd5c911220a%2Fj7hhijv_processed.png&w=3840&q=75)
Transcribed Image Text:Question 5 of 20
Choose the answer that makes the statement correct.
For firms in perfectly (purely) competitive markets, long-run economic profits are [dropdown menu] because firms will [dropdown menu] this market if profits are less than that and [dropdown menu] if profits are greater than that.
Dropdown 1 options:
- zero
- positive
- negative
Dropdown 2 options:
- exit
- enter
Dropdown 3 options:
- exit
- enter
- shut down
![**Question 5 of 20**
Choose the answer that makes the statement correct.
For firms in perfectly (purely) competitive markets, long-run economic profits are [dropdown] because firms will [dropdown] this market if profits are less than that and [dropdown] if profits are greater than that.
**Dropdown Options:**
- zero
- negative
- positive
This exercise tests the understanding of long-run economic profit scenarios in perfectly competitive markets. In such markets, firms typically earn zero economic profit in the long run because if profits are greater than zero, new firms will enter the market, increasing supply and decreasing prices until profits reach zero. Conversely, if profits are less than zero, firms will exit the market, decreasing supply and increasing prices until remaining firms earn zero economic profit.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1b551779-a94f-4658-8ab9-cb1269496a60%2Fc03b9c40-2cf9-4227-ab65-fcd5c911220a%2Fzongzee_processed.png&w=3840&q=75)
Transcribed Image Text:**Question 5 of 20**
Choose the answer that makes the statement correct.
For firms in perfectly (purely) competitive markets, long-run economic profits are [dropdown] because firms will [dropdown] this market if profits are less than that and [dropdown] if profits are greater than that.
**Dropdown Options:**
- zero
- negative
- positive
This exercise tests the understanding of long-run economic profit scenarios in perfectly competitive markets. In such markets, firms typically earn zero economic profit in the long run because if profits are greater than zero, new firms will enter the market, increasing supply and decreasing prices until profits reach zero. Conversely, if profits are less than zero, firms will exit the market, decreasing supply and increasing prices until remaining firms earn zero economic profit.
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