If firms in a competitive market are making positive economic profits, you would expect firms to the market, causing the market curve to shift to the .

It is safe to presume that this company has already reached the lowest point on its marginal cost curve (at which level the average cost might be more than the marginal cost, therefore, the average cost is even more than marginal cost, which is much more than the price it receives). This business should close since it cannot recoup its variable costs.

When companies inside a competitive industry start generating positive profits, it creates a chance for new companies to enter the market, which causes a rightward shift in the supply curve and a drop in price, returning all the companies to a condition of zero economic profit.

Therefore, the correct response is: As businesses enter the sector, then supply curve for the item will move to the right, increasing industry output and decreasing price.

Learn more about cost curve here:

https://brainly.com/question/17043517

#SPJ4

If firms in a competitive market are making positive economic profits, you would expect firms to ________ the market, causing the market ________ curve to shift to the ________.

Answer :

Other Questions

If firms in a competitive market are making positive economic profits, you would expect firms to the market, causing the market curve to shift to the .