If a competitive industry is incurring normal profits, output will stay the same as there is no incentive to expand. expand as resources move toward the industry. contract as resources move away from industry. expand as resources move away from industry.

If a competitive industry is incurring normal profits, output will stay the same as there is no incentive to expand. expand as resources move toward the industry. contract as resources move away from industry. expand as resources move away from 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

Chapter9: Market Structure And Long-run Equilibrium

Section: Chapter Questions

Problem 6MC

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If a competitive industry is incurring normal profits, output will

stay the same as there is no incentive to expand.

expand as resources move toward the industry.

contract as resources move away from industry.

expand as resources move away from industry.

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