When Economic Profit Exists in a Perfectly Competitive Market,we Expect

question 98

Multiple Choice

When economic profit exists in a perfectly competitive market,we expect

• A) existing firms to join forces and increase their prices so as to earn an even larger profit.
• B) existing firms to compete and lower their prices in order to gain market share.
• C) existing firms to join forces to prevent other firms from entering the industry.
• D) new firms to enter the industry,causing the market price to eventually fall.
• E) new firms to enter the industry,causing the market price to rise even higher.

Analyze the impact of variable costs on the production and pricing of goods or services.

Apply cost-minimization strategies to various business decision-making scenarios.

Evaluate the relationship between input factors and the output production process.

Calculate the most efficient allocation of resources for maximizing output or sales.

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Definitions:

Mental Illness

A broad range of conditions affecting mood, thinking, and behavior, often impacting daily functioning and well-being.

Environment

The surroundings or conditions in which a person, plant, or animal lives or operates.

Brain Chemical Changes

Alterations in the levels or activity of neurotransmitters and other chemicals within the brain, affecting mood, cognition, and behavior.

Bulimia

An eating disorder marked by binge eating followed by methods to avoid weight gain, such as vomiting (purging), excessive exercise, or fasting.