In a Perfectly Competitive Market, Which of the Following Statements

question 77

Multiple Choice

In a perfectly competitive market, which of the following statements is true?

• A)In the long run, price will change to reflect whatever change we observe in production cost.
• B)The existence of profits leads firms to exit the industry and losses leads firms to enter.
• C)In the long-run, economic profits are positive.
• D)Perfect competition generates prices greater than marginal costs.

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Definitions:

Phobia

A phobia is an intense, irrational fear of a specific object, situation, or activity that poses little to no actual danger.

Panic Disorder

A mental health condition characterized by recurrent unexpected panic attacks and persistent concern about having more attacks or their implications.

Agoraphobia

A disorder marked by severe fear about being in places or situations from which escaping could be hard or assistance may not be accessible.

Relative Seclusion

Relative seclusion refers to a state or situation where an individual or group is partially isolated or set apart from others, which can be voluntary or enforced.