When an industry supply curve increases enough to erase economic profits,
A) weaker firms exit the industry
B) quantity demanded decreases, but only slightly
C) all firms in the industry incur economic losses
D) entry of new firms and expansion of existing firms stop
E) marginal revenue increases
Correct Answer:
Verified
Q1: Long-run expansion in an increasing-cost industry increases
Q2: The term allocative efficiency refers to
A)the level
Q3: The term productive efficiency refers to
A)any short-run
Q4: In the short run, producers derive surplus
Q6: The relationship between price and quantity supplied
Q7: Economic profits in a competitive industry are
Q8: Resources are efficiently allocated when production occurs
Q9: In the short run, producers derive surplus
Q10: A firm that minimizes average cost will
Q11: Compared to the short run, the long-run
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