A Perfectly Competitive Firm Is Initially Earning Zero Economic Profit

question 29

Multiple Choice

A perfectly competitive firm is initially earning zero economic profit. Then, a decrease in demand for the firm's product occurs. Of the following, in the long run which action listed below is the firm most likely to take?

• A) Exit the market
• B) Increase its advertising to increase the demand for its product
• C) Increase the quantity it produces
• D) Increase the size of its plant

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Definitions:

Societal Perception

The way in which a society views or regards a particular issue, behavior, or group.

Man-Centered

Oriented or focused primarily on men, often to the exclusion or marginalization of women.

Male Hypoactive Sexual Desire Disorder

Persistence or absence of sexual thoughts, fantasies, and desire for sexual activity.

Sex-Related Thoughts

Mental activities or considerations specifically related to sexual desires, attractions, or activities.