6) Assume the wool industry is perfectly competitive. Why is it difficult for a wool producer to make excess profits in the long run? A) the fact that wool producers are "price takers" B) the assumption that wool producers in the industry do not "differentiate" their products C) the fact that the demand curve facing each wool producer is perfectly elastic D) There is free entry into the wool industry.

6) Assume the wool industry is perfectly competitive. Why is it difficult for a wool producer to make excess profits in the long run? A) the fact that wool producers are "price takers" B) the assumption that wool producers in the industry do not "differentiate" their products C) the fact that the demand curve facing each wool producer is perfectly elastic D) There is free entry into the wool industry.

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

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

Chapter23: Price-searcher Markets With Low Entry Barriers

Section: Chapter Questions

Problem 17CQ

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