Asked by Brian Triger on Jul 23, 2024
Verified
Assume that the market for soybeans is purely competitive. Currently, firms growing soybeans are earning positive economic profits. In the long run, we can expect
A) new firms to enter, causing the market price of soybeans to fall.
B) new firms to enter, causing the market price of soybeans to rise.
C) some firms to exit, causing the market price of soybeans to fall.
D) some firms to exit, causing the market price of soybeans to rise.
Soybeans Market
The economic market that deals with the buying and selling of soybeans, including its derivatives and products.
Economic Profits
The margin found by reducing total revenue by the sum of clear and concealed costs.
Market Price
The present price at which a service or asset is available for purchase or sale in the open market.
- Analyze the components that result in changes in the dimension of industries over an extended time frame, taking into account economic profits and losses.
- Evaluate the impact of consumer demand on purely competitive fields and the equilibrium it leads to.
Verified Answer
Learning Objectives
- Analyze the components that result in changes in the dimension of industries over an extended time frame, taking into account economic profits and losses.
- Evaluate the impact of consumer demand on purely competitive fields and the equilibrium it leads to.
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