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Author Question: Entry of new firms into a perfectly competitive market lowers the profits of the existing firms. ... (Read 175 times)

madam-professor

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Entry of new firms into a perfectly competitive market lowers the profits of the existing firms.
 
  Indicate whether the statement is true or false

Question 2

What is a Lorenz curve and what does it show?
 
  What will be an ideal response?



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shoemake

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Answer to Question 1

TRUE

Answer to Question 2

A Lorenz curve graphs the cumulative percentage of income (or wealth) against the cumulative percentages of households. The curve shows how equally income (or wealth) is distributed across households.





 

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