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If All Firms in a Perfectly Competitive Industry Earn a Normal

Question 35
Multiple Choice

If all firms in a perfectly competitive industry earn a normal profit,then: A)new firms will enter the industry. B)old firms will exit the industry. C)the number of firms in the industry is stable. D)market supply will shift to the left.

Related questions
Q 36
If all firms in a perfectly competitive industry are experiencing economic losses,then firms will: A)exit the industry,until economic profits are positive. B)exit the industry,until accounting profits equal zero. C)continue in the industry,hoping for better times. D)exit the industry,until economic profits equal zero.
Q 37
For entry into a particular perfectly competitive industry to occur,which of the following must be true? A)Accounting profits are equal to zero B)Accounting profits equal economic profits C)Economic profits are greater than zero D)Economic profits are equal to zero
Q 38
In an industry with free entry and exit,economic profits: A)indicate a market failure. B)can never occur. C)provide incentives for a reallocation of resources out of other industries and into the one with economic profits. D)can be sustained indefinitely.
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