In a Competitive Industry, Entry and Exit Decisions

question 78

Multiple Choice

In a competitive industry, entry and exit decisions:

• A) allow some firms to earn above-normal profits in the long run.
• B) ensure that labor and capital move across industries to optimally balance production.
• C) rely on demand signals, not price signals.
• D) move capital and labor away from profitable industries in order to maximize the total value of production.

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Definitions:

Task Demand Stressor

Describes conditions or aspects of a task that require sustained physical or mental effort, potentially leading to stress.

Quantitative

Pertaining to or expressible in terms of quantity, often involving the use of statistical methods to collect and analyze numerical data.

Occupational Safety

Refers to the practice and discipline of ensuring the safety, health, and welfare of individuals engaged in work or employment.

Willful Violations

Deliberate breaches of regulations or policies, often with knowledge of the wrongfulness or with neglect of safety and health standards.