« previous next »

Author Question: Explain how long-run economic profits are linked to entry in monopolistic competition and perfect ... (Read 77 times)

B

  • Hero Member
  • *****
  • Posts: 570
on: Jul 1, 2018
Explain how long-run economic profits are linked to entry in monopolistic competition and perfect competition.
 
  What will be an ideal response?

Question 2

The Internet auction site eBay is an example of a(n)
 
  A) Sealed Bid Auction.
  B) Second-Price Auction.
  C) English Auction.
  D) Both A and B.
Microeconomics ¦ Perloff ¦ 8th Edition
Buy Test-Bank


ttt030911

  • Sr. Member
  • ****
  • Posts: 315
Reply #1 on: Jul 1, 2018
Answer to Question 1

In the short run, all market structures allow for positive economic profits. However, those profits can only be maintained in the long run if other firms cannot enter the industry. If they can they will enter and competition will force the price of the good down until economic profits are zero.

Answer to Question 2

D


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

The average human gut is home to perhaps 500 to 1,000 different species of bacteria.

Did you know?

A recent study has found that following a diet rich in berries may slow down the aging process of the brain. This diet apparently helps to keep dopamine levels much higher than are seen in normal individuals who do not eat berries as a regular part of their diet as they enter their later years.

Did you know?

The longest a person has survived after a heart transplant is 24 years.

Did you know?

In the United States, congenital cytomegalovirus causes one child to become disabled almost every hour. CMV is the leading preventable viral cause of development disability in newborns. These disabilities include hearing or vision loss, and cerebral palsy.

Did you know?

A strange skin disease referred to as Morgellons has occurred in the southern United States and in California. Symptoms include slowly healing sores, joint pain, persistent fatigue, and a sensation of things crawling through the skin. Another symptom is strange-looking, threadlike extrusions coming out of the skin.

The air flowing into the engine can be directed through long or short runners for best performance ... The air flowing into the engine can be directed through long or short runners for best performance ...
Return of oxygenated blood to the heart and entry into the aorta (red = oxygenated blood, blue = ... Return of oxygenated blood to the heart and entry into the aorta (red = oxygenated blood, blue = ...
Economic objectives of firms Economic objectives of firms
economic question economic question
economic question economic question
economic question economic question
Video: What Are Carbohydrates? Importance of Carbs & High Carb Food

For a complete list of videos, visit our video library