Economic profits in a perfectly competitive industry will ...

[lak]

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.

[Kjones0604]

Answer to Question 1

True

Answer to Question 2

e

[lak]

TYSM

[scottmt]

Excellent