What happens if the U.S. textile industry has high barriers to entry? a.) The textile industry’s amount of new firms eventually causes prices to drop. b.) The textile industry’s high profits will attract new firms to enter. c.) The textile industry’s surviving companies earn a normal level of profit over the long run. d.) The textile industry creates blocked avenues to entry even with companies earning top profits.
What happens if the U.S. textile industry has high barriers to entry? a.) The textile industry’s amount of new firms eventually causes prices to drop. b.) The textile industry’s high profits will attract new firms to enter. c.) The textile industry’s surviving companies earn a normal level of profit over the long run. d.) The textile industry creates blocked avenues to entry even with companies earning top profits.
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter9: Price Takers And The Competitive Process
Section: Chapter Questions
Problem 1CQ
Related questions
Question
100%
What happens if the U.S. textile industry has high barriers to entry?
a.) The textile industry’s amount of new firms eventually causes prices to drop.
b.) The textile industry’s high profits will attract new firms to enter.
c.) The textile industry’s surviving companies earn a normal level of profit over the long run.
d.) The textile industry creates blocked avenues to entry even with companies earning top profits.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Microeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506893
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Microeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506893
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax