Asked by
Ravneet Singh
on Nov 04, 2024
Verified
It is ________ for a corn producer in a perfectly competitive corn industry to make excess profits because entry into the corn industry is free.
A) expected
B) very easy
C) likely
D) difficult
Corn Industry
The sector of the economy involved in the production, processing, and distribution of corn and corn-related products.
Excess Profits
Profits that exceed the normal expected return on investment, often occurring in industries with little to no competition.
- Analyze the role of free entry and exit in the long-term profitability of firms in a perfectly competitive market.
Verified Answer
GB
Learning Objectives
- Analyze the role of free entry and exit in the long-term profitability of firms in a perfectly competitive market.