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Linsey Sousa
on Oct 12, 2024

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If all the firms in a perfectly competitive industry are earning economic profits,in the long run all of the following will happen except

A) the supply curve will shift to the right.
B) new firms will enter the industry.
C) the equilibrium price of the product will fall.
D) that the demand curve will shift to the right.

Perfectly Competitive Industry

A market structure where many firms sell identical products, entry and exit are unobstructed, and all buyers and sellers have perfect information.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that producers are willing to supply.

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs, representing the excess returns over the firm's opportunity costs.

  • Determine the elements influencing the commencement and discontinuation in markets characterized by perfect competition.
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Toynell WilliamsOct 12, 2024
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