If a perfectly competitive market is in a short- run equilibrium and each firm has P > SRATC,then
A) new firms will enter the market because existing firms are earning economic profits.
B) price will fall in the short run as it is too high and firms are making economic profits.
C) individual firms in the industry will increase their output.
D) the market supply curve will become less elastic.
E) existing firms will continue to earn economic profits in the long run.
Correct Answer:
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Q20: If a perfectly competitive firm is faced
Q21: A perfectly competitive firm's demand curve
A)is downward
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Q23: Which of the following producers operate in
Q24: If a perfectly competitive firm produces at
Q26: Long- run equilibrium in a perfectly competitive
Q27: The term "perfect competition" refers to
A)cutthroat competition
Q28: An example of a product that could
Q29: Consider the following short- run cost curves
Q30: Consider the following cost curves for Firm
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