Economic profits in a perfectly competitive industry will encourage the entry of new firms, which will shift the market supply curve to the right.
Correct Answer:
Verified
Q5: The position of a perfectly competitive firm's
Q5: As an industry's output increases,the industry's demand
Q7: Perfectly competitive firms earn zero economic profits
Q9: A perfectly competitive firm faces a perfectly
Q10: The market demand curve in a perfectly
Q10: In short-run equilibrium in a perfectly competitive
Q12: The behavior of an individual perfectly competitive
Q16: The demand curve faced by a perfectly
Q19: In a perfectly competitive market,marginal revenue is
Q20: Firms should shut down in the short
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents