Assume That the Market for Soybeans Is Purely Competitive

question 156

Multiple Choice

Assume that the market for soybeans is purely competitive. Currently, firms growing soybeans are earning positive economic profits. In the long run, we can expect

• A)new firms to enter, causing the market price of soybeans to fall.
• B)new firms to enter, causing the market price of soybeans to rise.
• C)some firms to exit, causing the market price of soybeans to fall.
• D)some firms to exit, causing the market price of soybeans to rise.

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Definitions:

Social Support System

A network of family, friends, colleagues, and other individuals that provides emotional, informational, and practical assistance.

Old Habits

Established patterns of behavior that are repeated regularly and tend to occur subconsciously, often hard to change due to their deep-rooted nature in one's routine or personality.

Reward System

Mechanisms or programs designed to recognize and reward individuals for their performance and achievements, often used to motivate and retain employees.

Internal Variables

Factors within a study or experiment that can influence the outcome, often controlled or monitored by the researcher.