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History, 15.04.2020 03:34 adiafloresp2dkbx
19. Smokey's Smoke Detectors, Inc. operates in a perfectly competitive market for smoke alarms. Smokey
is currently earning short-run positive economic profits. Which of the following statements best
describes what Smokey will experience as the industry adjusts to the long-run equilibrium in a constant
cost industry?
A. Firms will enter the industry, market price will decrease, economic profits will increase
B. Firms will enter the industry, market price will decrease, economic profits will decrease
C. Firms will exit the industry, market price will decrease, economic profits will increase
D. Firms will exit the industry, market price will increase, economic profits will decrease
E. Firms will exit the industry, market price will increase, economic profits will increase
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Answers: 1
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19. Smokey's Smoke Detectors, Inc. operates in a perfectly competitive market for smoke alarms. Smok...
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