Under perfect competition, if an industry is characterized by positive economic profits in the short runQuestion 2Select one:a.firms will enter the market in the long run and the short-run supply curve will shift outward.b.firms will leave the market in the long run and the short-run supply curve will shift inward.c.firms will leave the market in the long run and the short-run supply curve will shift outward.d.firms will enter the market in the long run and the short-run supply curve will shift inward.Clear my choice

Which of the following would not occur as a result of a monopolistically competitive firm suffering a short-run economic loss?Correct answer  If the firm does not exit the industry in the long run, its demand curve will shift to the left.   If the firm remains in the industry in the long run, it will break even.   The firm could exit the industry in the long run. You Answered  If the firm does not exit the industry in the long run, its demand curve will shift to the right.

Firms in long-run equilibrium in a perfectly competitive industry will produce at the low points of their average total cost curves becauseQuestion 4Select one:a.firms maximize profits and free entry implies that maximum profits will be zero.b.firms in the industry desire to operate efficiently.c.firms seek maximum profits and to do so they must choose to produce where average costs are minimized.d.free entry implies that long-run profits will be zero no matter how much each firm produces.Clear my choice

Assume that the typical firm in a perfectly competitive market is making economic profit. Which of the following sequence of events best describes the change in prices and output that will occur over the long run as a result of free entry?Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.aThe short-run market supply curve shifts to the right, causing prices to fall; aggregate (total) industry output increases.bThe market demand curve shifts to the right, causing prices to rise; aggregate market output increases.cThe market demand curve shifts to the left, causing prices to fall; aggregate market output decreases.dThe short-run market supply curve shifts to the left, causing prices to rise; aggregate market output decreases.

If firms in a competitive market are making positive economic profits, you would expect firms to __________ the market, causing the market __________ curve to shift to the __________.Group of answer choicesenter; demand; leftleave; supply; leftenter; supply; rightenter; demand; rightenter; supply; left

Which of the following statements is NOT correct about perfectly competitive firms: Group of answer choices They will shut down in the short run if they are making economic losses. They cannot sustain positive economic profits in the long run. They will exit the market, in the long run, if they are making economic losses. They will remain in operation in the short run if they are making positive economic profits. They have no control over the market price.