3. [Firms and Industries Changing Over Time—The Rise and Fall of Industries] For the following statements please answer
Posted: Wed Jul 06, 2022 6:34 pm
3. [Firms and Industries Changing Over Time—The Rise and Fall ofIndustries] For thefollowing statements please answer TRUE or FALSE, and please give abrief explanation.(a) A firm can experience economic losses in the short run butremain in the market.
(b) Competitive firms always earn zero economic profit because theyset the market price equalto their marginal cost.
(c) In the long run, competitive firms produce at the lowestpossible value of average total cost.
(d) Since there are zero economic profits in the long run, thereis no incentive for a firm topursue cost-cutting measures.
(b) Competitive firms always earn zero economic profit because theyset the market price equalto their marginal cost.
(c) In the long run, competitive firms produce at the lowestpossible value of average total cost.
(d) Since there are zero economic profits in the long run, thereis no incentive for a firm topursue cost-cutting measures.