In Both Price-Taker and Competitive Price-Searcher Markets, Short-Run Economic Profits

question 125

Multiple Choice

In both price-taker and competitive price-searcher markets, short-run economic profits will lead to

• A) firms being able to sustain those economic profits into the long run.
• B) the exit of firms from the market and the eventual restoration of zero long-run economic profits.
• C) the entry of additional firms into the market and the eventual restoration of zero long-run economic profits.
• D) none of the above.

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Definitions:

Nerve Impulses

Electrical signals transmitted along nerve fibers, used for communication between neurons or between neurons and muscles.

Neuroglia

Non-neuronal cells in the central and peripheral nervous systems that provide support and protection for neurons.

Neurons

Electrically excitable cells in the nervous system that process and transmit information through electrical and chemical signals.

Micrograph

A micrograph is a photograph or digital image taken through a microscope or similar device to show a magnified image of an object.