If a Perfectly Competitive Firm Is Producing the Short- Run

question 9

Multiple Choice

If a perfectly competitive firm is producing the short- run profit- maximizing quantity and is earning positive economic profits, the firm should anticipate______ .

• A)the market equilibrium price to decrease
• B)earning economic profits indefinitely
• C)the market equilibrium price to increase
• D)the market supply to decrease

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Definitions:

Population Cycle

The fluctuation in population numbers over a period of time due to factors like food availability, predation, and disease.

Population Behaviours

The collective actions and patterns of behaviour exhibited by individuals within a population, influencing and being influenced by social and environmental factors.

Density-dependent

Factors whose effects on the size or growth of the population vary with the population density.

Intrinsic Rate

The maximum rate of growth of a population under ideal conditions, reflecting its reproductive potential and sustainability.