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Kayshiona Acquaye
on Oct 27, 2024

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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.
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Angel MontoyaOct 30, 2024
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