The entry of new firms into a perfectly competitive market in the long run is most likely the result of
a. temporarily above-normal profit, despite the presence of barriers to entry
b. continued above-normal profit, despite the presence of barriers to entry
c. temporarily above-normal profit, combined with the absence of barriers to entry
d. continued above-normal profit, combined with the absence of barriers to entry
e. either temporarily or continued above-normal profit, despite the presence of barriers to entry
D
You might also like to view...
Total utility is the benefit received from consuming an extra unit of a good
Indicate whether the statement is true or false
According to liquidity preference theory, an increase in the price level would ________
A) increase the demand for real money balances B) decrease the supply of real money balances C) decrease the real interest rate D) all of the above E) none of the above