When do new firms enter a perfectly competitive market? When does entry stop?
What will be an ideal response?
New firms enter a perfectly competitive market as long as the existing firms are making an economic profit. Essentially the new firms enter in order to make an economic profit themselves. Entry stops when it is no longer possible to make an economic profit, which occurs when the existing firms are earning zero economic profit, that is, the owners are earning a normal profit.
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To obtain the slope estimator using the least squares principle, you divide the
A) sample variance of X by the sample variance of Y. B) sample covariance of X and Y by the sample variance of Y. C) sample covariance of X and Y by the sample variance of X. D) sample variance of X by the sample covariance of X and Y.
We may see government supply social work internally rather than through private firms because
a. it is a public good b. it is difficult to monitor the quantity and quality of social work provided c. private firms would seek to cover their costs d. a government bureau would maximize its budget e. there is a great demand for such services