When firms in a price-taker market are temporarily able to charge prices that exceed their production costs,
A) the firms will earn long-run economic profit.
B) additional firms will be attracted into the market until price falls to the level of per-unit production cost.
C) the firms will earn short-run economic profits that will be offset by long-run economic losses.
D) the existing firms must be colluding or rigging the market, otherwise, they would be unable to charge such high prices.
Correct Answer:
Verified
Q67: Use the figure to answer the following
Q68: Figure 9-2 Q69: When market conditions in a price-taker market Q70: Use the figure to answer the following Q71: If occupational safety laws were changed so![]()
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