Attract new firms by economics profits

Economic profits within a competitive industry are signals which: (i) attract new firms into the industry. (ii) hinder innovation of new technologies. (iii) encourage inefficiency in existing firms. (iv) business conditions are deteriorating. (v) prices should rise in the near future.

I need a good answer on the topic of Economics problems. Please give me your suggestion for the same by using above options.

   Related Questions in Microeconomics

  • Q : Unitarily price elastic of demand At a

    At a price for $25, the demand for DVD games is around: (w) perfectly elastic. (x) perfectly inelastic. (y) unitarily elastic. (z) positively associated to supply.

    Q : Profit maximization-output level in

    Profit maximization needs a purely competitive firm to manufacture at an output level where: (i) marginal revenue > marginal cost. (ii) marginal cost equals the competitive price. (iii) marginal cost is falling. (iv) marginal reven

  • Q : Differnt types of demand and supply i

    i want to understand different market competitions using graphs and solving some problems

  • Q : Analytic Time-Short Run I have a

    I have a problem in economics on Analytic Time-The Short Run. Please help me in the following question. In short run: (1) At least one resource is fixed. (2) Firms can enter or exit the industry. (3) Economies of the scale are present. (4) Total fixed cost rises with

  • Q : Price ceiling set below equilibrium A

    A price ceiling set below equilibrium will raise the: (w) quantity supplied. (x) good’s opportunity cost to buyers. (y) sellers’ profits. (z) rate of excess supply. How can I solve my economics

  • Q : Law of Distribution by Pareto “ Law of

    “Law of Distribution” given by Vilfredo Pareto asserts that the: (w) relative prices for goods reflect how intensively labor is used as an input. (x) the percentages of national income going to labor and to capital is a co

  • Q : Backward Bending Labor Supplies Graph

    Graph for the supply of labor might be backward bending since: (i) The substitution effect overtakes the income effect at some wages. (ii) Overtime workers get pay for time and a half. (iii) The substitution effect. (iv) The income effect is much powerful than substit

  • Q : Shifting of labor demand for Labor The

    The labor demand will shift due to the modifications in all of the given except: (1) Prices of other resources. (2) Prices of the output. (3) MPP (4) Salaries. Can someone please help me in finding out the accurate answer from the

  • Q : Diminishing Marginal utility principle

    Can someone help me in finding out the right answer from the given options. The experience that your very first kiss with a latest crush was more thrilling and satisfying than your 10th kiss 35 minutes later is an illustration of the: (i) Familiarity principle. (ii) N

  • Q : Relative utility-Consumer Equilibrium

    Can someone please help me in finding out the accurate answer from the following question. The relative utility from the last dollar used up on food is the ratio: (i) Marginal utility of food or production cost of food. (ii) The Price of food or net grocery bill. (iii

©TutorsGlobe All rights reserved 2022-2023.