If perfectly competitive lawn care firms are making an economic profit, then
A) wages will be bid up until the economic profit are gone.
B) the firms must be superior and will continue to make an economic profit.
C) new firms will enter the industry.
D) they are not equating marginal revenue to marginal cost.
E) government regulation will be imposed to decrease their profit.
C
Economics
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Using the figure above, show the effect on the real interest rate and the quantity of loanable funds of an increase in expected profit
What will be an ideal response?
Economics
The indifference map
A) shows that the consumer is indifferent among all consumption bundles. B) is an individual indifference curve. C) captures the same information as the utility function. D) is impossible to derive from the utility function.
Economics