Which of the following statements about perfect competition is true?
A. In the long run, the entry and exit of firms will generate normal profits for firms.
B. In the short run, firms can only generate economic profits.
C. In the long run, the entry and exit of firms will generate economic profits for firms.
D. In the long run, the entry and exit of firms will generate losses for firms.
Answer: A
Economics
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In the above figure, if the price is $16 per unit, how many units will a profit maximizing perfectly competitive firm produce?
A) 0 B) 20 C) 30 D) 35
Economics
A disadvantage of moving too quickly is that
A) costs of entry are higher. B) the likelihood of misunderstanding the demand is greater. C) followers gain an advantage by learning from the first-mover. D) All of the above.
Economics