Suppose Economic Profits Exist in Perfect Competition in the Short

question 55

Multiple Choice

Suppose economic profits exist in perfect competition in the short run.Firms will enter in the long run because of easy entry,the short-run market _____ curve will shift to the right,and _____ will _____.

• A)supply;output;increase
• B)demand;supply;fall
• C)supply;demand;also shift to the right
• D)demand;price;increase

Learn the origins and meanings of key economic terms such as "conspicuous consumption."

Differentiate between induced consumption and other forms of consumption.

Comprehend how income levels affect consumption and savings, based on the consumption function.

Identify the most important determinants influencing the level of consumption.

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Definitions:

Efficient Allocation

The optimal distribution of resources among different entities to maximize productivity or satisfaction without waste.

Income Disparities

The difference in earnings among individuals or groups in the economy, often causing economic inequality.

Government Intervention

Actions by a government to affect the economy, often aiming to correct market failures or promote social welfare.

Imperfect Information

A market condition where all parties do not have equal access to all relevant information.