Author Question: Economic profits in a perfectly competitive industry will encourage entry of new firms, which will ... (Read 64 times)

lak · **on:** Jun 30, 2018

Economic profits in a perfectly competitive industry will encourage entry of new firms, which will shift the market supply curve to the right.
a. True
b. False
Indicate whether the statement is true or false

Question 2

The marginal cost of extraction of a nonrenewable resource increases with passage of time because:
a. the technology used in extraction depreciates in value.
b. the price of the product that uses this resource decreases.
c. the exchange rate in the international market appreciates.
d. the tragedy of commons problem arises.
e. the resource gradually becomes scarce.