If firms in a perfectly competitive industry are earning positive economic profits in the short run,we would expect firms to enter this industry and cause the market supply curve to ________.
A) shift left until price = minimum average total cost
B) shift left until price = minimum average variable cost
C) shift right until price = minimum average total cost
D) shift right until price = minimum average variable cost
Correct Answer:
Verified
Q135: The entry of new firms into a
Q136: Which of the following suggests that a
Q137: In a perfectly competitive market,if market price
Q138: When existing firms leave a perfectly competitive
Q139: When positive economic profits exist in an
Q141: A firm owns two production plants. The
Q142: What is likely to happen to the
Q143: Scenario: The rare earth element neodymium is
Q144: The following figure shows the marginal cost
Q145: A firm owns two production plants. The
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