In the long run, for a perfectly competitive market, if economic profit is
A) less than zero, then some firms will exit the market and the market supply curve will shift leftward.
B) greater than zero, then some firms will enter the market and the market supply curve will shift rightward.
C) equal to zero, then there is no entry or exit of firms into or out of the market.
D) All of the above answers are correct.
D
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While hurricane Katrina severely disrupted the normal flow of economic activity in the Gulf Coast States in 2005, in the periods following the hurricane
a. the price level fell below 100 b. unemployment in the U.S. spiked c. aggregate demand increased, sparked by the need for reconstruction d. real GDP fell to 1980's levels e. imports rose dramatically
Some colleges charge for student parking. Currently, your college does not charge for parking but the administration announced a possible charge of $2 per day. You are not sure when the new parking policy will start; therefore you decide to keep a $5 bill in your wallet. You hold to $5 for the:
A. impulsive motive. B. money creation motive. C. speculative motive. D. precautionary motive.