Which of the following statements is not characteristic of a perfectly competitive industry in long-run equilibrium?Ceteris paribus, there is no tendency for firms to either enter or exit the industry.
a. A profit-maximizing firm may produce any output level at which P < LRATC.
b. Every firm produces at an output level at which MC = LRATC
c. Ceteris paribus, there is no tendency for firms to either enter or exit the industry.
d. No firm earns an economic profit.
a
Economics
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If a textile worker earns $38,000 per year working in the textile mill on a job that was saved by a protective tariff costing consumers $148,000 per year (for that job alone), the textile worker could be paid $48,000 to stay at home all day watching TV until the protective tariff is eliminated, and consumers would still be better off by approximately
A. $48,000 per year. B. $168,000 per year. C. $18,000 per year. D. $100,000 per year.
Economics
What three predictions of new trade theory regarding trade patterns are supported by studies? (Check all that apply.)
What will be an ideal response?
Economics