Author Question: In the long run, for a perfectly competitive market, if economic profit is A) less than zero, ... (Read 111 times)

Marty · **on:** Jun 29, 2018

In the long run, for a perfectly competitive market, if economic profit is

A) less than zero, then some firms will exit the market and the market supply curve will shift leftward.
B) greater than zero, then some firms will enter the market and the market supply curve will shift rightward.
C) equal to zero, then there is no entry or exit of firms into or out of the market.
D) All of the above answers are correct.

Question 2

The above table gives Sue's marginal utility schedules for sub sandwiches and Mountain Dew, the only products Sue consumes. Suppose the price of a sub sandwich is 4 each and the price of a Mountain Dew is 2 each. Sue's income is 12.

If Sue is at a consumer equilibrium, she eats ________ sub sandwich(es) and drinks ________ Mountain Dews. A) 0; 6
B) 1; 4
C) 2; 2
D) 3; 0