Author Question: Suppose firms in a perfectly competitive market are incurring an economic loss. Over time A) ... (Read 55 times)

serike · **on:** Jun 29, 2018

Suppose firms in a perfectly competitive market are incurring an economic loss. Over time

A) other firms enter the market, so the price rises and the economic loss decreases.
B) some firms leave the market, so the price rises and the economic loss decreases.
C) other firms enter the market, so the price falls and the economic loss decreases.
D) some firms leave the market, so the price falls and the economic loss decreases.

Question 2

In comparison to an employer in a competitive labor market, a monopsony employer hires ________ workers and produces ________ output.

A) fewer; less
B) fewer; more
C) more; less
D) more; more