Under perfect competition, if an industry is characterized by positive economic profits in the short run
a. firms will leave the market in the long run and the short-run supply curve will shift outward.
b. firms will enter the market in the long run and the short-run supply curve will shift outward.
c. firms will enter the market in the long run and the short-run supply curve will shift inward.
d. firms will leave the market in the long run and the short-run supply curve will shift inward.
b
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Contract negotiations between an employer and a labor union representing workers are referred to as:
A) collective bargaining. B) contractualization of employment. C) treaties. D) crowding out.
The Laffer curve illustrates the relationship between
a. supply and demand. b. tax rates and tax revenues. c. opportunity cost and inflation. d. tax liability and taxable income.