Question 2 Mean reversion of profits for competitive industries suggests that Group of answer choices A. when there are profits, the competition of new firms will reduce that profit; and when there...

Extracted text: Question 2 Mean reversion of profits for competitive industries suggests that Group of answer choices A. when there are profits, the competition of new firms will reduce that profit; and when there are losses, firms going out of business will reduce profits for businesses that remain B. when there are profits, the competition of new firms will reduce that profit; and when there are losses, firms going out of business will increase profits for businesses that remain C. profits will tend to increase over time D. when there are profits, the competition of new firms will increase that profit; and when there are losses, firms going out of business will reduce profits for businesses that remain Question 3 Mohammad is an accounting major. Upon graduation, he is not sure if he should accept a job offer in accounting from a bank or a law firm. He wants to work in whichever industry expected to have higher profits so he can earn a higher income. According to the indifference principle, Group of answer choices A. he should be indifferent between a higher income and a more secure job B. accountants will earn the same as other professions because of the mean reversion of wages and salaries C. accountants will earn the same amount in both industries because labor is mobile D. entry of new firms seeking profit, while other firms go out of business if experiencing losses will ensure that the profitability of both industries will be the same