Perfect Competition ________ a Fair Outcome ________.
Perfect competition ________ a fair outcome ________.
A) achieves; because total surplus is maximised
B) may achieve; if average total costs are minimised
C) achieves; because both the fair rules and fair results conditions are met
D) does not achieve; because firms must be price takers
E) does not achieve; because entrepreneurs only earn a normal profit
If firms in a perfectly competitive market are incurring economic losses, then as time passes firms ________ and the market ________.
A) enter; supply curve shifts rightward
B) exit; supply curve shifts leftward
C) exit; supply curve shifts rightward
D) exit; demand curve shifts leftward
E) enter; demand curve shifts leftward
In the long run, a firm in a perfectly competitive market will
A) remove all competitors and become a monopoly.
B) make zero economic profit, so that its owners earn a normal profit.
C) remove all competitors and become a monopolistically competitive firm.
D) incur an economic normal loss but not earn a positive economic profit.
E) make zero normal profit but its owners will make an economic profit.
Technological change brings a ________ to firms that adopt the new technology.
A) permanent economic loss
B) temporary normal profit
C) temporary economic loss
D) temporary economic profit
E) permanent economic profit