In the Long-Run, If Firms in a Perfectly Competitive Market

question 331

Multiple Choice

In the long-run, if firms in a perfectly competitive market are incurring persistent economic losses, some firms will

• A) exit and the price will fall.
• B) exit and the price will rise.
• C) enter and the price might either rise or fall.
• D) exit and the price might either rise or fall.

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Definitions:

Disclosing

The act of making something known or public, especially information that was previously secret or private.

Alternatives

Other options or choices available in a given situation or for solving a particular problem.

Transparency

The practice of being open, honest, and straightforward about various activities, operations, or decisions.

Stealth Marketing

Marketing strategies that aim to advertise a product to people without them realizing they are being marketed to.