Which of the following statements regarding the long-term ...

[lak]

Which of the following statements regarding the long-term equilibrium is TRUE?
 
  A) As new firms enter a market, each existing firm increases the quantity it produces.
  B) Firms leave a market if they are making zero economic profit.
  C) Entry and exit stop when firms are making an economic profit.
  D) Entry and exit stop when firms make zero economic profit.

Question 2

If Mexico is currently operating at a point beyond its production possibilities frontier, then there are unemployed resources in Mexico. Is this statement true or false? Briefly explain your answer.
 
  What will be an ideal response?

[Perkypinki]

Answer to Question 1

D

Answer to Question 2

The statement is false. It is false on two counts. First, production points beyond the production possibilities frontier are unattainable, so it is not possible for Mexico to be producing at such a point. Second, points within not beyond the production possibilities frontier have unemployed resources.

[lak]

Thanks for the timely response, appreciate it

[meganmoser117]

Excellent