Author Question: If a perfectly competitive industry is neither expanding nor contracting, we would typically expect ... (Read 18 times)

lilldybug07 · **on:** Jun 30, 2018

If a perfectly competitive industry is neither expanding nor contracting, we would typically expect that:
a. accounting profits to be zero.
b. economic profits to be zero.
c. the price of the good will be stable
d. both (b) and (c) would be true.

Question 2

An increase in the price of an input will increase the _____ of producing the final good and shift the supply curve of the commodity _____.
a. marginal cost; upward
b. transaction cost; upward
c. marginal cost; downward
d. transaction cost; downward