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Anastasy [175]
3 years ago
14

In a competitive industry some firms earn positive economic profits while some earn zero economic profit in the long run because

:
A. there exists free entry and exit of firms.
B. the firms have different cost structures.
C. the firms sell their output at different prices.
D. the industry supply curve is perfectly elastic.
Business
1 answer:
horsena [70]3 years ago
3 0

Answer: Option B

 

Explanation: In simple words, competitive industry is the one in which both the consumer and the producer are price takers due to the high number of participants on both sides. No individual firm could control the price and the profit is totally dependent on the quantity sold.

However, the cost structure could be different of different firms and in the long run only those firms survives that have a reasonable profit margin on sales. The other firms earns nothing and ultimately leaves the industry.

Hence the correct option is B .

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Answer:

<u>A. summarizes and documents the​ firm's financial activities during the past year</u>

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If each of two competing monopolists undertakes equal advertising efforts to attract consumers away from the other, the total re
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Complete Question:

If each of two competing monopolists undertakes equal advertising efforts to attract consumers away from the other, the total result is

Group of answer choices:

A. they will both increase market share.

B. they will simply neutralize one another's efforts.

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D. they will both improve their industrial position.

Answer:

B. they will simply neutralize one another's efforts.

Explanation:

If each of two competing monopolists undertakes equal advertising efforts to attract consumers away from the other, the total result is they will simply neutralize one another's efforts.

A monopolist can be defined as an individual who is engaged in selling a unique product in a market without any competitor. Also, a monopolistic competition involves various firms engaged in monopoly competes with one other, but selling products that are unique and distinct from the other.

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