Homework SourseQ1 What does NOT happen in a perfectly competitive industry
Q:1 What does NOT happen in a perfectly competitive industry when economic profit is greater than zero?
Q:2 For a perfectly competitive firm in the long run, all of the following conditions hold EXCEPT:
Q:3 In perfect competition if firms produce where P=MC they ensure ________ because the social benefits of production as measured by the price that people are willing to pay, are in balance with the ________ to society of that production.
| a)new firms have an incentive to enter the industry |
Solution
Ans
D Because more firms will enter industry
2 A price is not equal to AFc but ATc
3 c is right. Here social cost is equal to price
