If Firms in a Competitive Market Are Earning Above-Normal Profits

question 200

True/False

If firms in a competitive market are earning above-normal profits, the elimination principle states that new firms will enter the market and drive profits to normal.

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Definitions:

Haloalkane

A class of organic compounds where one or more hydrogen atoms in an alkane (saturated hydrocarbon) are replaced with halogen atoms (such as chlorine, bromine, or iodine).

R or S Description

A system for describing the configuration of chiral centers in molecules, indicating the spatial arrangement of atoms around the center.

CFC

Chlorofluorocarbon, a class of compounds used as refrigerants, solvents, and propellants in aerosols, contributing to ozone layer depletion when released into the atmosphere.

Asymmetric Carbon

A carbon atom attached to four different types or groups of atoms, making it a stereo center.