In a price-taker market, a higher economic profit: O indicates that other goods that could have been produced with the same resources are of higher value and firms should exit. O will be earned by producers in the long run than in the short run. is earned by the firms that set their price above the level set by other producers. Osignals additional resources to flow into the production of a good that has a high value to consumers relative to production costs.
In a price-taker market, a higher economic profit: O indicates that other goods that could have been produced with the same resources are of higher value and firms should exit. O will be earned by producers in the long run than in the short run. is earned by the firms that set their price above the level set by other producers. Osignals additional resources to flow into the production of a good that has a high value to consumers relative to production costs.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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In a price-taker market, a higher economic profit: O indicates that other goods that could have been produced with the same resources are of higher value and firms should exit. O will be earned by producers in the long run than in the short run. is earned by the firms that set their price above the level set by other producers. Osignals additional resources to flow into the production of a good that has a high value to consumers relative to production costs.
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