1. Consider s market where there are many firms with different cost structures
The last firm to enter earns____.
A. Positive economic profits
B. Average economics profit
C. Zero Economic profit
D. The greatest Economic profit
2. If demand shift to the left (decreases), the last firm that entered____.
A. earns negative economic profit and so exits the market
B. earns positive economic profit, leading to new firms entering the market
C. Earns negative economic profits and thus undertakes cost cutting measures to return to profitability
D. is indifferent between producing or exiting the market and so the outcome is indeterminate