Suppose that in a perfectly competitive market, firms are making ...

[SAVANNAHHOOPER23]

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

[ndhahbi]

Answer to Question 1

d

Answer to Question 2

False

[SAVANNAHHOOPER23]

Excellent

[alvinum]

TYSM