In perfect competition, as the long run approaches, economic profit will cause
a. the entry of new firms, shifting the market supply curve to the right
b. the emergence of powerful monopolistic corporations
c. inflation
d. technological innovation
e. government regulation
A
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If the price elasticity of supply in the kiwi fruit industry equals 1, supply is
a. perfectly elastic b. relatively elastic c. unit elastic d. relatively inelastic e. perfectly inelastic
Which of the following statements about ticket scalping is correct?
A. On economic grounds, ticket scalping does more harm than good among those who engage in it B. Ticket scalping occurs when the event organizers set the formal price of the tickets higher than the equilibrium price C. The existence of a scalpers' market could mean that the event sponsors/organizers are getting lower sales revenues that what they could have gotten at equilibrium D. Ticket scalping obviously benefits the sellers/scalpers, but is often harmful to the ones buying the tickets