If perfectly competitive industry B is currently realizing economic profits, we would expect that:
a. industry output will fall, good B will fall in price, and economic profits will tend to disappear.
b. industry output will fall, good B will rise in price, and economic profits will tend to disappear.
c. industry output will rise, good B will fall in price, and economic profits will tend to disappear.
d. industry output will rise, good B will fall in price, and economic profits will tend to increase.
c
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Suppose the city of Chicago imposes a rent control program that fixes rents at $400 below the equilibrium rent. With this plan
A) the quantity of apartments demanded will increase. B) the quantity of apartments supplied will increase. C) young people and poor people will have an easier time finding apartments. D) the deadweight loss in Chicago's apartment market will be eliminated. E) there will be a surplus of apartments offered for rent.
Regarding the production of health care, more recent studies suggest that economies of scale exist up to a hospital size of approximately 200 beds
Indicate whether the statement is true or false