Firms Cannot Enter an Industry in Which Positive Profits Are

question 62

Multiple Choice

Firms cannot enter an industry in which positive profits are being earned in

• A) the short run.
• B) the long run.
• C) the short run and in the long run.
• D) As long as positive profits are being earned, firms can enter the industry in both the short run and the long run.

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Definitions:

Trademark

A distinguishable symbol, pattern, or phrase that differentiates the goods or services of a specific origin from those of other sources.

Overvalued

A term used to describe an asset or security whose price is believed to be higher than its intrinsic value.

Consolidated Balance Sheet

A consolidated financial report that shows the assets, liabilities, and shareholders' equity of a parent company along with its subsidiaries as though they are one entity.

Inventory

The components, items in the process of completion, and completed products which form part of a company's assets that are available or will soon be available for sale.