Author Question: When perfectly competitive firms are earning zero accounting profits, a. we would expect entry into ... (Read 52 times)

saliriagwu · **on:** Jun 30, 2018

When perfectly competitive firms are earning zero accounting profits,
a. we would expect entry into the industry.
b. we would expect stability in the industry, since it is in long run equilibrium.
c. we would expect exit from the industry.
d. we would expect none of the above.

Question 2

If Japan has a comparative advantage over Canada in the production of computers, which of the following must be true?
a. Supply of unskilled labor in Japan is higher than that in Canada.
b. Japan incurs a lower input cost in the production of computers.
c. Japan incurs a higher input cost in the production of computers.
d. Japan has a lower opportunity cost in the production of computers.
e. Japan has a higher opportunity cost in the production of computers.