Incorrect Question 5 0/1 pts Why would a competitive firm stay in business if it
ID: 1122952 • Letter: I
Question
Incorrect Question 5 0/1 pts Why would a competitive firm stay in business if it made zero economic proft? It knows that the demand will increase in the future It knows that others will exit the market There are no alternatives for the inputs used Accounting profits are positive Incorrect Question 6 Incorrect 0/1 pts During the summer many businesses in Lexington stay open even though they are largely empty. Why is this? Their fixed costs are covered if they stay open They have to serve those still in Lexington for the summer It gives an opportunity to try out new products before students return Their variable costs are covered if they stay openExplanation / Answer
Answer.)
Q5.) Accounting profits are positive
Q6.) Their Variable costs are covered if they stay open
Q7.) Overall Market Quantity Increases, Price stays the same