Author Question: As firms enter a perfectly competitive market, the price A) falls and the existing firms' ... (Read 140 times)

mydiamond · **on:** Jun 29, 2018

As firms enter a perfectly competitive market, the price

A) falls and the existing firms' economic profits do not change.
B) rises and the existing firms' economic profits decrease.
C) falls and the existing firms' economic profits decrease.
D) falls and the existing firms' economic losses do not change.

Question 2

In comparison to an employer in a competitive labor market, a monopsony employer pays a ________ wage rate and hires ________ workers.

A) lower; fewer
B) lower; more
C) higher; more
D) higher; fewer