Solved

If the Typical Firm in a Perfectly Competitive Market Is

Question 233

Multiple Choice

If the typical firm in a perfectly competitive market is earning positive economic profits then which of the following would be expected to happen?


A) Firms will exit the market.
B) New firms will enter the market.
C) There will be neither entry nor exit in this market.
D) There will soon be a depression in the market.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q228: Figure 9-22
Figure 9-22 </p></div><svg width=

Q229: Figure 9-23
Figure 9-23 </p></div><svg width=

Q230: In the short run,
A)new firms may enter

Q231: Figure 9-15
Figure 9-15 </p></div><svg width=

Q232: Figure 9-20
Figure 9-20 </p></div><svg width=

Q234: Figure 9-17
Figure 9-17 </p></div><svg width=

Q235: As new firms enter a market,the equilibrium

Q236: The perfectly competitive firm's goal is to
A)maximize

Q237: Figure 9-19
Figure 9-19 </p></div><svg width=

Q238: Figure 9-18
Figure 9-18 </p></div><svg width=

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents