When Firms Already in a Competitive Market Are Profitable, an Incentive

question 178

Multiple Choice

When firms already in a competitive market are profitable, an incentive exists for:

• A)existing firms to increase production
• B)new firms to seek government subsidies that would allow them to enter the market
• C)existing firms to raise prices
• D)new firms to enter the market

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Definitions:

Primary Motivation

The fundamental reason or driving force behind an individual's actions or behavior.

Thrills

A strong feeling of excitement or pleasure derived from potentially risky activities.

Power

The capacity or ability to direct or influence the behavior of others or the course of events.

Fame

The state or condition of being widely recognized and esteemed by a large audience, often as a result of notable achievements or celebrity status.