If Firms in a Perfectly Competitive Market Are Making an Economic

question 61

Multiple Choice

If firms in a perfectly competitive market are making an economic profit,new firms will enter.This entry shifts the market

• A)demand curve leftward,and the market price falls.
• B)demand curve rightward,and the market price rises.
• C)supply curve leftward,and the market price rises.
• D)supply curve rightward,and the market price falls.
• E)supply curve rightward and the market demand curve leftward.

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Definitions:

Investing Activities

Deals related to buying and selling assets with a long-term horizon and different kinds of investments, excluding those similar to cash.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, essentially representing the ownership equity held by stockholders.

Balance Sheet

A financial statement that provides a snapshot of a company's financial condition at a particular moment in time, showing assets, liabilities, and shareholders' equity.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services provided.