In the Long Run When a Perfectly Competitive Firm Experiences

question 209

Multiple Choice

In the long run when a perfectly competitive firm experiences negative economic profits,

• A) the high barriers to entry prevent further competition.
• B) existing firms exit the industry.
• C) additional firms enter the industry.
• D) firms have no incentive to exit or enter the industry.

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Definitions:

Loose Associations

A thought disorder characterized by a disorganized thinking process, evident when someone jumps from one idea to another with little logical connection.

Tangential

Diverging from the previous topic or path without reaching a definite goal or conclusion.

Poverty

A state or condition in which a person or community lacks the financial resources and essentials for a minimum standard of living.

Liability Concerns

Issues or considerations regarding legal responsibilities and the potential for being subject to lawsuits or claims.