When economic profits are negative in a perfectly competitive industry,
a. we would expect the market supply curve to shift to the left as a result.
b. we would expect the market supply curve to shift to the right as a result.
c. we would not expect any change in the market supply curve to result.
d. we would expect that the market demand curve to shift left as a result
a
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In the above table, if the market is perfectly competitive and unregulated, at the equilibrium output level
A) marginal private cost equals the marginal private benefit. B) marginal private cost is less than the marginal private benefit. C) marginal social cost equals the marginal private benefit. D) marginal social cost is greater than the marginal private benefit.
If the economy were truly made of industries that fit the textbook definition of perfect competition what do you expect would be a major disadvantage of this from the consumer's perspective?
What will be an ideal response?