Which of the Following Is True for a Perfectly Competitive

question 53

Multiple Choice

Which of the following is true for a perfectly competitive agricultural market with economic profits?

• A)Firms will enter and existing firms will increase their production until economic profits are zero.
• B)The profits will last indefinitely since there are barriers to entry.
• C)Firms will exit until normal profits are zero.
• D)No entry or exit will occur based on economic profits.

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Definitions:

Increased Dedication

A heightened level of commitment or devotion towards a particular activity, cause, or goal.

Alcohol Consumption

The act of drinking beverages containing ethanol, which can range from moderate drinking to alcohol abuse, affecting health, behavior, and social relationships.

Income And Expenses

Refers to the money received by an individual or organization (income), and the cost incurred for goods or services (expenses).

Reflect

To think deeply or carefully about something, often for the purpose of gaining insight or understanding.