Author Question: Suppose that in a perfectly competitive market, firms are making economic profits. In the long run, ... (Read 38 times)

SAVANNAHHOOPER23 · **on:** Jun 30, 2018

Suppose that in a perfectly competitive market, firms are making economic profits. In the long run, we can expect to see:
a. some firms leave.
b. the market price rise.
c. market supply shift to the left.
d. economic profits become zero.
e. production levels remaining the same as in the short-run.

Question 2

If a supply curve has a constant slope throughout its length, it must have a constant price elasticity throughout its length.
a. True
b. False
Indicate whether the statement is true or false