Which of the Following Is True

question 327

Multiple Choice

Which of the following is true?

• A) When firms in a price-taker market are earning zero economic profit, they will shut down.
• B) When firms in a price-taker market are earning positive economic profits, new firms will enter the industry causing the market price to fall until the firms in the industry are earning only zero economic profit.
• C) When firms in a price-taker market are earning economic losses, some firms will exit the industry causing the market price to rise until the remaining firms are earning zero economic profit.
• D) Both b and c are true.

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Definitions:

Dienophile

A compound that participates in Diels-Alder reactions by combining with a diene to form a ring structure.

Thermal Cycloaddition

A chemical process where two or more molecules join together in a reaction that involves the redistribution of electrons and is facilitated by heat.

Allyl Anion

A negatively charged species derived from an allyl group, featuring a conjugated system of electrons across three carbon atoms.

Ethylene

A colorless flammable gas with the formula C2H4, used as a hormone in plants and an important industrial organic chemical in the production of polymers.