« previous next »

Author Question: Monopolists can make an economic profit in the long-run because of barriers to entry. Indicate ... (Read 133 times)

TVarnum

  • Hero Member
  • *****
  • Posts: 548
on: Jun 29, 2018
Monopolists can make an economic profit in the long-run because of barriers to entry.
 
  Indicate whether the statement is true or false

Question 2

Comment on the following statement: When firms are earning positive profits, the industry supply curve will shift to the right.
 
  What will be an ideal response?


parker125

  • Sr. Member
  • ****
  • Posts: 332
Reply #1 on: Jun 29, 2018
Answer to Question 1

TRUE

Answer to Question 2

The statement is true. When firms in perfectly competitive industries are earning positive profit, there is an incentive for firms to expand their scale of operation and for new firms to enter the industry. Thus, the industry supply will rise.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

Of the estimated 2 million heroin users in the United States, 600,000–800,000 are considered hardcore addicts. Heroin addiction is considered to be one of the hardest addictions to recover from.

Did you know?

As the western states of America were settled, pioneers often had to drink rancid water from ponds and other sources. This often resulted in chronic diarrhea, causing many cases of dehydration and death that could have been avoided if clean water had been available.

Did you know?

Famous people who died from poisoning or drug overdose include, Adolf Hitler, Socrates, Juan Ponce de Leon, Marilyn Monroe, Judy Garland, and John Belushi.

Did you know?

Though methadone is often used to treat dependency on other opioids, the drug itself can be abused. Crushing or snorting methadone can achieve the opiate "rush" desired by addicts. Improper use such as these can lead to a dangerous dependency on methadone. This drug now accounts for nearly one-third of opioid-related deaths.

Beaker with ibex, dogs, and long-necked birds, from southwest Iran. Beaker with ibex, dogs, and long-necked birds, from southwest Iran.
The location of the variable fuel sensor can vary, depending on the make and model of vehicle, but ... The location of the variable fuel sensor can vary, depending on the make and model of vehicle, but ...
Long-Range Forecasts Long-Range Forecasts
Ayurvedic massage. Long sweeping stroke from foot around shoulder and down the arm, recipient prone. Ayurvedic massage. Long sweeping stroke from foot around shoulder and down the arm, recipient prone.
Economic activity as viewed by environment and ecological economists Economic activity as viewed by environment and ecological economists
economic question economic question
Video: Carbohydrate digestion (brush border enzymes, end products) & Carb absorption (fructose, galactose)

For a complete list of videos, visit our video library