Decrease prices as firms enter the industry

When most firms in a competitive industry experience economic profits, in that case long run competitive pressures tend to cause: (w) greater economic profits. (x) prices to decrease as firms enter the industry. (y) industry output to fall. (z) several firms to leave the industry.

Hello guys I want your advice. Please recommend some views for above Economics problems.

View Complete Question

Related Questions in Microeconomics

Q : Revenue expenditure Why payment of

Why payment of interest is treated as revenue expenditure? Answer: Since it does not cause any decrease in the liability of government.

Q : Labor Unions and Employment The labor

The labor union will not enhance its members' job viewpoints by: (1) Raising worker productivity through apprenticeship. (2) Limiting entry through quotas or high initiation fees. (3) Lobbying for the tariffs on competing the foreign goods. (4) Collectively bargaining

Q : National Income in Equality Standard As

As per the equality standard of income distribution: (w) people should be paid according to their needs for income. (x) income should be distributed to resource owners. (y) justice requires national income to be divided equally. (z) people should be p

Q : Market Power and Demand for Labor All

All of the given might causes labor markets to be non-competitive except: (i) Backward bending labor supply curves. (ii) Unions and employer trade associations. (iii) Monopolistic power exercised by the firm. (iv) Monopsonistic power exercised by the

Q : Shifts in the Demand Curve What are the

What are the conditions that shifts the Demand Curve?

Q : Why economic problems occur Why

Why economic problems occur? Answer: This is due to unlimited or infinite wants and inadequate resources.

Q : Equilibrium price in setting minimum

Setting a minimum price floor above the equilibrium price will: (w) raise the equilibrium price. (x) create excess demand at the minimum price. (y) create excess supply at the minimum price. (z) clear the market at the minimum price.<

Q : Barriers to entry and long run

A firm which realizes an economic profit in the short run will carry on generating economic profits in the long run only when: (i) it maximizes economic revenue. (ii) barriers to entry prevent entry from rival firms. (iii) its managers minimize princi

Q : Equilibrium in the long run This would

This would be a fallacy to suppose that: (w) a purely competitive firm’s demand curve is perfectly elastic. (x) a purely competitive firm’s supply curve is the marginal cost above the minimum point of the AVC. (y) purely competitive firms generate where MR

Q : Relationship between Total utility and

Describe the relationship between Total utility (TU) and Marginal utility (MU)? Answer:

Discover Q & A

Leading Solution Library

Avail More Than 1444410 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1931948
Asked

3,689

Active Tutors

1444410

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment