If Firms in a Competitive Market Are ________ Then There

question 336

Multiple Choice

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

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

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Definitions:

Distinctive

Having a unique quality, characteristic, or feature that distinguishes it from others within a similar category or context.

Dual

Characterized by having two parts, elements, or aspects.

Categorical

A characteristic or description that involves clearly defined divisions or categories, often used in classification and sorting.

Federal Mandates

Directives issued by the federal government requiring states or municipalities to comply with certain regulations or perform specific actions, often tied to federal funding.