Hello, i have some multiple choice questions Roots Wholefoods sells fruit and vegetables in a perfectly competitive market. Which of these statements about the decisions which it faces is true?a) Its downward sloping demand curve ensures that it can make economic profits.b) Its constant returns to scale in production ensures that it faces constant marginal costs.c) It does not have to worry about the entry of other firms, ensuring that its profits can last for a long time.d) In the long run, it expects to make zero economic (or supernormal) profits.

Given : Roots Wholefoods sells fruits and vegetables in a perfectly competitive market.

Answered: Roots Wholefoods sells fruit and…

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter24: Perfect Competition

Section: Chapter Questions

Problem 8E

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Hello, i have some multiple choice questions

Roots Wholefoods sells fruit and vegetables in a perfectly competitive market. Which of these statements about the decisions which it faces is true?
1. a) Its downward sloping demand curve ensures that it can make economic profits.
2. b) Its constant returns to scale in production ensures that it faces constant marginal costs.
3. c) It does not have to worry about the entry of other firms, ensuring that its profits can last for a long time.
4. d) In the long run, it expects to make zero economic (or supernormal) profits.

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