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Question
When a perfectly competitive firm or a monopolistically competitive firm is making zero economic profit
a. the industry is in equilibrium; no firms will want to enter or exit.
b. those firms who dont differentiate their product sufficiently will want to leave the market.
c. those firms who wish to differentiate their product more will want to enter the market.
d. market demand shifts to the right.
e. the price of the output will rise in the long run.
Answer
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Related questions
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Price gouging laws will usually result in ________ the product in the distressed market.
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The economic entity most likely to engage in price gouging is
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a. He or she will substitute away from the product.
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What is the long-run consequence of a price ceiling law?
a. A surplus will continue to exist and will grow larger over time.
b. A surplus will continue to exist and will grow smaller over time.
c. A shortage will continue to exist and will grow larger over time.
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Q:
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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Q:
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A(n) ________ in the elasticity of supply or demand in a market for a good that is taxed would tend to ________ who is legally responsible for paying the tax.a. decrease; broaden b. decrease; have no effect on c. increase; broadend. increase; narrowe. increase; have no effect on
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Q:
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Q:
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