Asked by
Ashley McCain
on Oct 27, 2024
Verified
Suppose economic profits exist in perfect competition in the short run.Firms will enter in the long run because of easy entry,the short-run market _____ curve will shift to the right,and _____ will _____.
A) supply;output;increase
B) demand;supply;fall
C) supply;demand;also shift to the right
D) demand;price;increase
Market Supply Curve
A graph showing the total quantity of a good that producers are willing to sell at different prices.
Easy Entry
A characteristic of market structures where new competitors can easily enter the market without significant barriers or cost.
- Illustrate the contribution of firm entry and exit to the realization of long-run equilibrium within a perfect competition framework.
- Detail the mechanism through which fluctuations in market conditions prompt changes in supply and demand in the long run.
Verified Answer
SB
Learning Objectives
- Illustrate the contribution of firm entry and exit to the realization of long-run equilibrium within a perfect competition framework.
- Detail the mechanism through which fluctuations in market conditions prompt changes in supply and demand in the long run.
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