Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Which of the following events will induce firms in a competitive market to Enter an industry? Which will induce firms to exit? When will entry
Which of the following events will induce firms in a competitive market to
- Enter an industry?
- Which will induce firms to exit?
- When will entry or exit cease?
Explain your answer.(Short answers)
- A technological advance lowers the fixed cost of production of every firm in the industry
- The wages paid to workers in the industry go up for an extended period of time
- A permanent change in consumer tastes increases demand for the good
- The price of a key input rises due to a long term shortage of that Input
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