Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If a perfectly competitive industry has some firms earning very large economic profits, over the long run (over time) we can expect a. new firms

If a perfectly competitive industry has some firms earning very large economic profits, over the long run (over time) we can expect

a. new firms to enter the industry

b. the market supply curve to shift to the left

c. the market price to rise

d. profits earned by firms in the industry to rise

e. all of the above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Macroeconomics Theories and Policies

Authors: Richard T. Froyen

10th edition

013283152X, 978-0132831529

More Books

Students also viewed these Economics questions

Question

1. Why do we trust one type of information more than another?

Answered: 1 week ago