Suppose That Some Firms in a Perfectly Competitive Industry Are

question 86

Multiple Choice

Suppose that some firms in a perfectly competitive industry are earning positive economic profits. At this time, the:

• A) industry supply curve is shifting to the left.
• B) number of firms in the industry will change in the short run.
• C) number of firms in the industry will decrease.
• D) industry is not in long-run equilibrium.

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Definitions:

Brand Name

The name given to a product or service by a company, which identifies and differentiates it from others in the market.

Copyright

A form of intellectual property protection that grants the creator exclusive rights to reproduce, distribute, and adapt their original work.

Patent

A legal document granted by the government giving an inventor exclusive rights to manufacture, use, or sell an invention for a certain number of years.

Primary Demand

The total demand for an entire product category rather than for a specific brand.