Positive profit attracts entry, and negative profit leads to exit. The ability of an asset to move from lower- to higher-valued uses is the force that moves an industry toward long-run equilibrium. Such asset mobility leads to

Positive profit attracts entry, and negative profit leads to exit. The ability of an asset to move from lower- to higher-valued uses is the force that moves an industry toward long-run equilibrium. Such asset mobility leads to

Positive profit attracts entry, and negative profit leads to exit. The ability of an asset to move from lower- to higher-valued uses is the force that moves an industry toward long-run equilibrium. Such asset mobility leads to




a) Competitive disadvantage
b) The Indifference Principle
c) The Waving Hand Equilibrium
d) Below-normal returns.



ANS B


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