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If Typical Firms in a Competitive Industry Are Earning Profits

Question 20

Multiple Choice

If typical firms in a competitive industry are earning profits, the industry


A) can be expected to experience the entry of new firms.
B) is allocatively efficient.
C) is in a long- run equilibrium.
D) must have experienced a decrease in demand or an increase in the costs.
E) has too many resources allocated to it.

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