答案如下
When a firm is earning positive economic profits, what will happen in this market? A) Losses will occur in the short run. B) Price takers will be over run by price searchers. C) New firms will enter driving down the economic profits to zero. D) Accounting profit will be zero in the short run.
Your answer: C was correct! New firms will enter a monopolistic competitive market with economic profits above zero and will absorb some market demand. This will shift the demand curve down to the point where price equals average total cost and there are zero economic profits.
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