The market condition in which firms do not face incentives to enter or exit the market and firms earn a normal profit is known as:Multiple choice question.long-run equilibrium.short-run equilibrium.a shortage.market equilibrium.

The market condition in which firms do not face incentives to enter or exit the market and firms earn a(n) profit is known as long-run equilibrium. (Remember enter only one word in the blank.)

How do firms in a perfectly competitive market respond to economic profits in the market?Firms exit the marketThe number of firms remains the sameFirms enter the marketFirms increase the price of their product

In the presence of _______ profits, firms enter until the market reaches the point at which the firms are generating a(n) ______ profit; then entry stops and the market settles into its long-run equilibrium.Multiple choice question.accounting; positiveeconomic; normaleconomic; supernormalaccounting; normal

Normal Profits occur when all firms in a market are producing at their economic optimum and:Question 14Answera.no firms are exiting the industry.b.new firms are being attracted into the industry.c.the long run equilibrium market price for the industry is above the market price for the product.d.each resource is earning a return that is neither greater nor less than its next-best employment possibility (its opportunity cost).e.each firm's marginal revenue is greater than its marginal

In the presence of profits, firms enter a perfectly competitive market until the market reaches the point at which the firms are generating a profit; then entry stops and the market settles into its -run equilibrium. (Make sure to put only one word in each blank.)