When Market Conditions in a Competitive Industry Are Such That

question 235

Multiple Choice

When market conditions in a competitive industry are such that firms cannot cover their total production costs, then

• A)the firms will suffer long-run economic losses.
• B)the firms will suffer short-run economic losses that will be exactly offset by long-run economic profits.
• C)some firms will exit the market, causing prices to rise until the remaining firms can cover their total production costs.
• D)all firms will go out of business, since consumers will not pay prices that enable firms to cover their total production costs.

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Definitions:

Dependence Training

An educational and socialization process aiming to foster a level of dependency among individuals on their social group for emotional support, survival, or decision-making.

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An economic system where communities primarily focus on producing or obtaining enough resources to meet their immediate needs, with little or no surplus for trade.

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The process of bringing up and caring for children, including their physical, emotional, educational, and social development.

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Compliance with orders or requests from authority figures, or adherence to societal norms and laws.