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)
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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
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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.
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