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When profit-maximizing firms in competitive markets areearning profits, a.market

ID: 1252312 • Letter: W

Question

When profit-maximizing firms in competitive markets areearning profits, a.market demand must exceed market supply at themarket-equilibium price. b. market supply must exceed market demand at themarket-equilibrium price. c. new firms will enter the market. d.the most inefficient firms will be encouraged to leave themarket. When profit-maximizing firms in competitive markets areearning profits, a.market demand must exceed market supply at themarket-equilibium price. b. market supply must exceed market demand at themarket-equilibrium price. c. new firms will enter the market. d.the most inefficient firms will be encouraged to leave themarket.

Explanation / Answer

When profit-maximizing firms in competitive markets areearning profits, a.market demand must exceed market supply at themarket-equilibium price. b. market supply must exceed market demand at themarket-equilibrium price. c. new firms will enter the market.- marketis profitable and easy to enter and it would thus more want tojoin d.the most inefficient firms will be encouraged to leave themarket.
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