6) Assume the wool industry is perfectly competitive. Why is it difficult for a wool producer to make excess profits in the long run? A) the fact that wool producers are "price takers" B) the assumption that wool producers in the industry do not "differentiate" their products C) the fact that the demand curve facing each wool producer is perfectly elastic D) There is free entry into the wool industry.

6) Assume the wool industry is perfectly competitive. Why is it difficult for a wool producer to make excess profits in the long run? A) the fact that wool producers are "price takers" B) the assumption that wool producers in the industry do not "differentiate" their products C) the fact that the demand curve facing each wool producer is perfectly elastic D) There is free entry into the wool industry.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 5.6IP

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