In the Long Run, If Firms in a Perfectly Competitive

question 195

Multiple Choice

In the long run, if firms in a perfectly competitive market are incurring economic losses, then

• A) new firms will enter the market and the price will rise.
• B) some firms will leave the market and the price will fall.
• C) some firms will leave the market and the price will rise.
• D) new firms will enter the market and the price will fall.

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Definitions:

Peptidoglycan

A sophisticated polymer located in bacterial cell walls, offering shape and structural integrity.

Penicillin

A group of antibiotics derived from Penicillium fungi, used in the treatment of bacterial infections by inhibiting cell wall synthesis.

Gram-Negative

Bacteria characterized by a cell wall structure that does not retain the crystal violet stain used in the Gram staining method of bacterial differentiation.

Hypotonic Environment

An environment in which the concentration of solutes is lower outside the cell than inside, leading to water influx into the cell.