Asked by
Marta Lazzeroni
on Oct 27, 2024
Verified
Suppose that some firms in a perfectly competitive industry earn negative economic profits in the short run.In the long run,the:
A) short-run industry supply curve will not shift.
B) short-run industry supply curve will shift to the left.
C) number of firms in the industry will not change.
D) number of firms in the industry will increase.
Economic Profits
Profits exceeding the opportunity costs of all resources used by a firm.
Industry Supply Curve
A graphical representation showing the total amount of a commodity that all producers in an industry are willing and able to supply at different prices.
- Examine the importance of firm entry and exit in securing long-run equilibrium in an ideally competitive market setting.
Verified Answer
BB
Learning Objectives
- Examine the importance of firm entry and exit in securing long-run equilibrium in an ideally competitive market setting.
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