Author Question: If firms in a competitive market are then there is for firms to the ... (Read 81 times)

hubes95 · **on:** Jun 29, 2018

If firms in a competitive market are ________ then there is ________ for firms to ________ the industry.

A) incurring economic losses; an incentive; exit
B) incurring economic losses; no incentive; exit
C) making economic profits; no incentive; enter
D) making zero economic profit; an incentive; exit

Question 2

If the government creates a system of pollution permits, firms with low marginal costs of reducing pollution will

A) buy permits from other firms.
B) sell permits to other firms.
C) hold on to the permits they have been issued and not attempt to buy more.
D) not be issued permits.