Asked by
Jackson Avery
on Nov 16, 2024
Verified
Refer to Figure 16-3. Which of the following will occur in the long run in this industry?
A) Firms will exit this industry.
B) Firms will enter this industry.
C) This firm will continue to earn positive economic profits.
D) This firm will incur losses.
Economic Profits
The difference between the total revenue generated by a business and the total costs, including both explicit and implicit costs.
Industry Exit
The process by which firms leave a market or sector, often due to economic pressures or declining profitability.
- Analyze the effects of market dynamics on monopolistic competition that contribute to the absence of economic profit in the prolonged timeframe.
Verified Answer
SM
Learning Objectives
- Analyze the effects of market dynamics on monopolistic competition that contribute to the absence of economic profit in the prolonged timeframe.
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