In the long run, when economic profit is greater than zero in a perfectly competitive industry, _____
a. existing firms contract their production levels
b. firms suffer losses but decide to operate
c. there is an upward pressure on the market price of the good
d. new firms enter the industry
d
You might also like to view...
Which of the following examples reflects monopolistic competition?
a. Mihai subscribes to Link, Inc. because it’s the only cable company in his area. b. Stefan buys a baseball made by Hit, Inc. because there are no good substitutes. c. Elena finds that the supermarket stocks bananas produced by only one company. d. Ana-Maria has difficulty choosing between ten brands of soap.
During the housing boom, the demand for mortgage-backed securities in the global market ______.
a. was very low b. was very high c. stemmed from high interest rates d. was eliminated by tariffs