Economic profits in the nomic profits in the rent-a-wreck Industry are $400,000 per firm. Assuming that the

Economic profits in the  

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nomic profits in the rent-a-wreck Industry are $400,000 per firm. Assuming that the Industry is perfectly competitive Multiple Choice new firms will enter but there will be no effect on the supply of car rentals. the Industry is in equilibrium. new firms will enter and the supply of the car rentals will increase. firms will leave the industry and supply will fall. nomic profits in the rent-a-wreck Industry are $400,000 per firm. Assuming that the Industry is perfectly competitive Multiple Choice new firms will enter but there will be no effect on the supply of car rentals. the Industry is in equilibrium. new firms will enter and the supply of the car rentals will increase. firms will leave the industry and supply will fall.

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