Which of the following statements is false?
A) Given the nature of cost curves, positive economic profits can only induce entry of new firms.
B) Entry and expansion can occur at the same time in the same industry.
C) When positive economic profits prevail in an industry, firms often expand.
D) When economic profits are negative, firms might leave an industry.
E) An industry ceases to either expand or contract when economic profits are zero.
Correct Answer:
Verified
Q66: When firms leave an industry,
A)it is due
Q67: Firms leave a competitive industry in the
Q68: In the long run, an industry can
Q69: Which of the following is false?
A)As firms
Q70: When an industry is in decline,
A)it is
Q72: An increase in market price is likely
Q73: A competitive firm's long-run equilibrium exists where
Q74: All else being constant, when firms leave
Q75: Suppose a competitive industry is in long-run
Q76: In the long run, if a firm
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents