Assume the market for orange juice is perfectly competitive. Orange juice producers currently earn a zero economic profit. Orange juice producers will likely begin to incur economic losses in the short run, and some producers will exit the industry until those remaining earn a zero economic profit, if consumers
A. switch from grape juice to orange juice.
B. do not change their demand for orange juice.
C. switch from orange juice to grape juice.
D. All of the above are correct.
Answer: C
Economics
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If the price of grapes increases, total expenditures on grapes will decline if
a. there are few substitutes for grapes. b. the supply of grapes is inelastic. c. the demand for grapes is elastic. d. grapes are a normal good.
Economics
The level of aggregate expenditures in a mixed open economy is comprised of:
A. C a + I g + X n B. C a + I g + G + T + X n . C. C a + I g + X n + G. D. C a + G.
Economics