If a Competitive Industry Is Neither Expanding nor Contracting, We

question 214

Multiple Choice

If a competitive industry is neither expanding nor contracting, we would expect

• A) total revenue to be zero.
• B) economic profits to be zero.
• C) total opportunity cost to be zero.
• D) more resources to flow to that industry.

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Definitions:

Chemical Compounds

Substances formed by the combination of two or more different chemical elements held together by chemical bonds.

Pottery

The craft or profession of making objects from clay, fired at high temperatures to create bowls, vases, and other artifacts.

Primary Invention

The original creation of a new process, method, or device that significantly alters how people live or interact with their environment.

Secondary Innovation

The deliberate application or modification of an existing idea, method, or device.