Up Until What Point Will Firms Continue to Enter a Competitive

question 75

Multiple Choice

Up until what point will firms continue to enter a competitive industry?

• A) until the supply curve is vertical
• B) until the market price falls below average variable cost
• C) until all resources are fully employed
• D) until any economic profits have been competed away

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Definitions:

GDP

Gross Domestic Product, the total monetary value of all final goods and services produced within a country's borders in a specific time period.

American Tourists

Individuals from the United States who travel to different countries or destinations for pleasure, leisure, or cultural experiences.

GNP

Gross National Product, which measures the total economic output produced by a country's residents, both domestically and abroad.

GDP

Gross Domestic Product, which is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.