If a typical firm in a perfectly competitive industry is earning profits, then
A) all firms will continue to earn profits.
B) new firms will enter in the long run causing market supply to decrease, market price to rise, and profits to increase.
C) new firms will enter in the long run causing market supply to increase, market price to fall, and profits to decrease.
D) the number of firms in the industry will remain constant in the long run.
Answer: C
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The first formal acknowledgement of the primary macroeconomic goals of price stability, high employment, and promoting economic growth in the United States came with passage of the: a. Federal Reserve Act of 1913
b. the Sherman Antitrust Act of 1890. c. the Social Security Act of 1935. d. the Employment Act of 1946.