Firms Are Likely to Enter a Competitive Industry When _____

question 72

Multiple Choice

Firms are likely to enter a competitive industry when _____.

• A) the market price of the good is low
• B) existing firms are making supernormal profits
• C) the fixed cost of production is high
• D) the costs of economic factors of production are high

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Definitions:

Sociocultural Framework

A theory that examines how society and culture influence human development and behavior.

Lev Vygotsky

A Russian psychologist who made significant contributions to cognitive development, emphasizing the roles of social interaction and culture.

Abstract Thought

The ability to think about objects, principles, and ideas that are not physically present, involving complex processing of concepts rather than concrete objects.

Mental Categories

The classifications of cognitive information into organized groups in the brain, facilitating understanding and memory.