As Long as Existing Firms ________ in an Industry, New

question 82

Multiple Choice

As long as existing firms ________ in an industry, new firms will enter the industry, causing the industry ________ curve to shift to the right.

• A) earn economic profits; supply
• B) break even; demand
• C) earn economic profits; demand
• D) break even; supply

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Definitions:

Personal Property

Any movable property that is not attached to real estate; includes both tangible and intangible items.

Fee Simple Absolute

Ownership rights entitling the holder to use, possess, or dispose of the property however he or she chooses during his or her lifetime.

Ownership Limitations

Restrictions or constraints on the rights of owning property, which may be imposed by law, regulations, or agreements.

Partial Ownership

Holding a fraction or a portion of the total stake or equity in a property, company, or financial asset.