ECN 212 FINAL PAPER 2026 FULL QUESTIONS AND ACCURATE SOLUTIONS STUDY GUIDE

ECN 212 FINAL PAPER 2026 FULL
QUESTIONS AND ACCURATE
SOLUTIONS STUDY GUIDE
◉ Which of the following is true about economic profits? Answer: Only
one industry in the economy can have positive economic profits at any
one time.


◉ As firms migrate from low accounting profit industry A to a high
accounting profit industry B, the price, the revenue and the profit in
industry A will tend to ________, and the price, the revenue and the
profit in industry B will tend to _________ Answer: increase decrease


◉ Consider a perfectly competitive industry in long-run equilibrium. If
for some reason demand decrease the short-run the price will _________
and the output will _________ Then in the long-run, firms will migrate
________ the industry, causing the price to __________ and the
industry's output to _________ Answer: drop
decrease
out of
rise
decrease


◉ In a constant cost industry, if there is an increase in demand, the price
in the long run will end up being ______ the original price, because the
price in the long-run tends to settle ______ the bottom of the ATC