The corn market is perfectly competitive, with thousands of corn farmers. In the 2000s, the price of corn soared so that new farmers entered the corn market
Initially, entry ________ the economic profit of the initial corn farmers and in the long run the initial corn farmers ________. A) increased; made an even greater economic profit than initially
B) decreased; made zero economic profit
C) increased; made zero economic profit
D) decreased; incurred an economic loss
E) increased; made an economic profit
B
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For a competitive firm, the value of output ___________ and the marginal product of labor ___________ with each additional worker hired.
A. stays constant; decreases B. increases; decreases C. increases; increases D. decreases; stays constant
A COLA is
A. An automatic adjustment of nominal income to the rate of inflation. B. An inflation rate of at least 200 percent, lasting more than one year. C. A price index that refers to all goods and services included in GDP. D. A mortgage that adjusts the nominal interest rate to changing rates of inflation.