When economic profits in a perfectly competitive industry are positive
A) new firms will be attracted to the industry, and economic profits will decline to zero.
B) the industry is in equilibrium.
C) firms will increase output to earn even higher profits.
D) firms will increase prices while they have the opportunity.
Correct Answer:
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Q318: Q319: Q320: All of the following are true regarding Q321: If an industry's long-run per-unit costs decrease Q322: In a decreasing-cost industry, an increase in Q324: The exiting of firms from a perfectly Q325: If a perfect competitor faces P = Q326: If an industry's long-run per-unit costs increase Q327: In an increasing-cost industry, an increase in Q328: If an industry's long-run per-unit costs are
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