Question: 6) Is the following statement correct? Explain why. (4 points) In perfect competition, when a firm is making a positive economic profit in the short

6) Is the following statement correct? Explain why. (4 points) "In perfect competition, when a firm is making a positive economic profit in the short run, then new firms enter the market, causing the market supply curve to shift leftward and the market price to increase

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

please write, a script that is for 5 minutes and includes the questions and answers which will be provided below Please answer the following questions. Context: Poultry industry The Poultry...

choose the correct answer pls Question 1 Which of the following is NOT a characteristic of a monopolistically competitive market? O Many firms O Firms producing where MR = MC. O Firms selling...

please write, a script that is for 5 minutes and includes the questions and answers which will be provided below Please answer the following questions. Context: Poultry industry The Poultry...

If MR is greater than MC, a firm should: A.increase production B.lower the price C.decrease production D.increase price Question 2 of 34 Juan's marginal utility from strawberries is 200 and his...

Poll405 is currently the only firm offering an audience response system that professors can use during their online classes. The price charged by Poll405 is currently $130. A typical professor values...

Help me to reply to four people. Person 1: If US manufacturers produce less output, there will be less need for independent trucking companies to transport goods. In the short run, the trucking...

pls choose the correct answer Question 1 2 pts Which is the best definition for a monopoly? O The situation when a firm is the sole provider of a good with no close substitutes. O Any situation when...

14 75 A monopolistic firm is discriminating price in two markets where demand curves are: P1 = 150 - 2.5Q1 and P2 = 310 - 10Q2 Monoplist's cost is given as C = 500 + 100 where Q = Q1 + Q2 Firm will...

A firm has market power if it can Group of answer choices minimize costs. influence the market price of the good it sells. maximize profits. hire as many workers as it needs at the prevailing wage...

Let us examine the behavior of the variance update in Equation (15.1). a. Plot the value of 2t as a function of t, given various values for 2x and 2z. b. Show that the update has a fixed point u 2...

Indicate whether each of the following statements is (i) always true, (ii) sometimes true, or (iii) never true. For those that are (ii) sometimes true, explain when the statement is true. a. A...

Devin is , a private imvestor, purchases $ 1 , 0 0 0 par value bonds with a 1 2 percent coupon rate and a 8 . 2 5 percerit yield to maturity. Devin will hold the bonds until maturity. Thus, he will...

Your boss is trying to figure out how to get the kinds of people she needs for her organization to do well, while at the same time dealing appropriately with an increasing number of workers coming...

13. Give four examples of psychological Maginot lines.

10. What is meant by the statement, it is the expectation that something will happen that creates actions?.

8. Why do we select some facts and not others when we want to communicate something to others?