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Question
If firms in a competitive market are making zero economic profits, the long-run market supply curve
a. is above the point where the short-run market supply curve and the demand curve intersect.
b. is below the point where the short-run market supply curve and the demand curve intersect.
c. and the short-run market supply curve and the demand curve all intersect at the same point.
d. shifts upward.
e. shifts downward.
Answer
This answer is hidden. It contains 70 characters.
Related questions
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b. A surplus will continue to exist and will grow smaller over time.
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Suppose Solomon lives in a community with no price controls. What do you expect will happen if his town borders a community where there is a binding price ceiling on most products?
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