If Nicole's Knick-Knacks Is a Perfectly Competitive Firm and Is

question 113

Multiple Choice

If Nicole's Knick-Knacks is a perfectly competitive firm and is making zero economic profits:

• A) firms will enter the market.
• B) firms will exit the market.
• C) Nicole's Knick-Knacks will stay in the market.
• D) the market supply curve will shift to the left.
• E) the market supply curve will shift to the right.

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Definitions:

Optimal Distinctiveness Theory

A social psychology theory suggesting individuals seek to balance their need for uniqueness with their desire for belonging.

Need for Control

An individual's desire or requirement for autonomy and influence over their environment or situation.

Autonomy

The capacity to make an informed, uncoerced decision; often associated with self-governance and independence.

Individualistic Societies

Societies that emphasize personal achievements, individual rights, and autonomy, as opposed to collective goals.