Which One of the Following Does Not Occur in the Long

question 83

Multiple Choice

Which one of the following does not occur in the long run when firms in a market make an economic profit?

• A)Firms enter the market.
• B)The market supply curve shifts rightward.
• C)Each firm increases production.
• D)Economic profit of each firm decreases.
• E)Market price falls.

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Definitions:

Annual Amortization

The process of gradually writing off the initial cost of an asset over a period typically corresponding to the asset's useful life.

Investment Balance

The current value of all the investments held by an individual or entity.

Initial Value Method

The initial value method is an accounting approach where investments are recorded at their acquisition cost without subsequent adjustment for changes in market value.

Dividends Received

Dividends Received refers to the payments a shareholder gets from a corporation or a fund as a return on investment.