If There Are Short-Run Profits in a Perfectly Competitive Industry,in

question 211

Short Answer

If there are short-run profits in a perfectly competitive industry,in the long run new firms will ____________ and the industry-wide price will _________.

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Definitions:

Capable of Performing

The ability or competency to carry out tasks or fulfill roles effectively.

Dimension of an Attribution

The aspects considered when evaluating the cause of behavior, typically including locus (internal vs. external), stability, and controllability.

Gestalt

A concept from psychology suggesting that the mind understands and interprets holistic patterns and configurations rather than just simple aggregations of parts or elements.

Visual Stimulus

Any sight or image that may influence or prompt a response from an observer.