When profit-maximizing firms in competitive markets areearning profits, a.market demand must exceed market supply at themarket-equilibium price. b. market supply must exceed market demand at themarket-equilibrium price. c. new firms will enter the market. d.the most inefficient firms will be encouraged to leave themarket. When profit-maximizing firms in competitive markets areearning profits, a.market demand must exceed market supply at themarket-equilibium price. b. market supply must exceed market demand at themarket-equilibrium price. c. new firms will enter the market. d.the most inefficient firms will be encouraged to leave themarket.
Explanation / Answer
When profit-maximizing firms in competitive markets areearning profits, a.market demand must exceed market supply at themarket-equilibium price. b. market supply must exceed market demand at themarket-equilibrium price. c. new firms will enter the market.- marketis profitable and easy to enter and it would thus more want tojoin d.the most inefficient firms will be encouraged to leave themarket.