When entry barriers into a market are low, firms will tend to earn zero economic profit in the long run because
a. low entry barriers lead to rising costs.
b. profit-seeking entrepreneurs will not enter a market when entry barriers are low.
c. short-run profit attracts additional suppliers and drives down the market price.
d. consumers will refuse to pay more than the cost of producing a good once they find out the producer's per-unit costs.
C
Economics
You might also like to view...
When UPS implemented changes which allowed it to deliver more packages with the same number of workers and planes, this represented a positive technological change
Indicate whether the statement is true or false
Economics
If the marginal propensity to save is 0.4, the multiplier is 2.5
Indicate whether the statement is true or false
Economics