In a competitive industry some firms earn positive economic profits while some earn zero economic profit in the long run because:
A) there exists free entry and exit of firms.
B) the firms have different cost structures.
C) the firms sell their output at different prices.
D) the industry supply curve is perfectly elastic.
B
Economics
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Which of the following events would increase producer surplus?
a. Sellers' costs stay the same and the price of the good increases. b. Sellers' costs increase and the price of the good stays the same. c. Sellers' costs increase and the price of the good decreases. d. All of the above are correct.
Economics
With a price floor:
A. producer surplus will increase if profits increase. B. producer surplus will increase is profits fall. C. producer surplus will decrease if profits increase. D. producer surplus always decreases.
Economics