Asked by
Kayshiona Acquaye
on Oct 27, 2024Verified
Short-run economic profits in a perfectly competitive industry encourage firms to _____ the industry,and short-run losses encourage firms to _____ the industry.
A) exit;enter
B) enter;enter
C) enter;exit
D) exit;exit
Economic Profits
The difference between total revenue and total costs, including both explicit and implicit costs, representing additional earnings beyond the normal profit level.
Industry Entry
The process of a new competitor or company beginning operations in a particular market.
- Clarify the significance of the entry and exit dynamics of firms for achieving long-run equilibrium in a perfectly competitive marketplace.
Verified Answer
AM
Learning Objectives
- Clarify the significance of the entry and exit dynamics of firms for achieving long-run equilibrium in a perfectly competitive marketplace.
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