If Perfectly Competitive Firms Are Making an Economic Profit,the Economic

question 165

Multiple Choice

If perfectly competitive firms are making an economic profit,the economic profit

• A) attracts entry by more firms, which lowers the price.
• B) can be earned both in the short run and the long run.
• C) is less than the normal profit.
• D) leads to a decrease in market demand.
• E) generally leads to firms exiting as they seek higher profit in other markets.

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Definitions:

Interracial Sexual Relations

Romantic or sexual relationships between individuals of different racial backgrounds.

Antebellum South

The region and culture of the Southern United States in the period before the Civil War, marked by agricultural economy and slavery.

Planters

Wealthy landowners in agricultural economies who owned and controlled large plantations and the labor, often enslaved, that worked them.

Slave-Labor System

A system where individuals are forced into labor without pay, typically under harsh conditions.