If Firms in a Competitive Market Are _______ Then There

question 51

Multiple Choice

If firms in a competitive market are _______ then there is _______ for firms to _______ the industry.

• A) making economic profits; no incentive; enter
• B) making zero economic profit; an incentive; exit
• C) incurring economic losses; an incentive; exit
• D) incurring economic losses; no incentive; exit

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Definitions:

Sample Information

Data or observations collected from a subset of a larger population, used to estimate or infer characteristics about the whole population.

EMV

Expected Monetary Value; a financial concept that calculates the average outcome when the future includes scenarios that may or may not happen.

Decision Tree

A graphical representation used to visualize the path of decisions and their possible consequences, including outcomes, resources, cost, and utility.

Revenue Management

Revenue Management is the strategic analysis and optimization of sales and inventory to maximize profitability, often used in airline, hotel, and other service industries.