-Suppose the Cost Curves in the Above Figure Apply to All

question 220

Multiple Choice

-Suppose the cost curves in the above figure apply to all firms in the market. If the initial price is P₁, firms are ________ and some firms will ________ the industry.

• A) making an economic profit; leave
• B) making an economic profit; enter
• C) incurring an economic loss; leave
• D) incurring an economic loss; enter

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Definitions:

Society

A group of individuals involved in persistent social interaction, or a large social grouping sharing the same geographical or social territory, typically subject to the same political authority and dominant cultural expectations.

Globalization

The method through which companies or various entities gain global influence or begin to function at an international level, resulting in heightened interconnectivity.

Cultural Practices

Refers to the habits, rituals, and traditions specific to a community or society that reflect their values, beliefs, and way of life.

Distinctive Sets

Collections of elements or items that are clearly different or distinguished from others in specific ways.