During a period when new entrants are being attracted to an industry, we would expect that:
a. economic profits are positive
b. as a result, economic profits are falling.
c. as a result, economic profits are rising.
d. both (a) and (b) are true.
d
Economics
You might also like to view...
A marginal cost pricing rule for a natural monopoly sets ________
A) price equal to marginal cost and greater than average total cost B) marginal revenue equal to marginal cost C) marginal revenue equal to average total cost D) price equal to marginal cost
Economics
One cost of an unanticipated inflation is that it
A) transfers wealth from lenders to borrowers. B) transfers wealth from borrowers to lenders. C) decreases menu costs. D) increases the purchasing power of money.
Economics