Answered step by step
Verified Expert Solution
Question
1 Approved Answer
If an industry is showing a 5 percent rate of return in terms of Economics Profits, then no other firms will enter into this market
If an industry is showing a 5 percent rate of return in terms of Economics Profits, then no other firms will enter into this market because standard microeconomic theory clearly tells us that a minimum Economic Profit of at least 10 percent should exist before any firm would want to enter the industry. Group startsTrue or False
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started