In a perfectly competitive market, if market price is higher than the average total cost of production, ________
A) firms will incur losses in the long run
B) firms will make profits in the long run
C) new firms will enter the industry
D) firms will exit the industry
C
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Refer to the scenario above. What is the national income of the economy?
A) $7,000 B) $10,000 C) $2,000 D) $5,000
Which of the following statements is false?
A) Each country as a whole is made better off as a result of international trade, but individuals within each country may be made worse off. B) Within each country, some individuals are made better off as a result of international trade, but one of the countries will be worse off overall. C) Although some individuals may not be made better off as a result of international trade, both countries may be made better off overall. D) Not all individuals in both countries are made better off as a result of international trade.