If Price Is Above the Average Variable Cost but Below

question 24

Multiple Choice

If price is above the average variable cost but below the average total cost of a representative firm in a competitive industry:

• A) there will be entry to the industry over time.
• B) there will be exit from the industry over time.
• C) the firms in the industry are just earning a normal rate of return.
• D) the firms in the industry are earning a supranormal rate of return.
• E) the industry is in long-run equilibrium.

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Definitions:

Personal Lack

A perceived deficiency in oneself, often in comparison to others or with respect to personal goals.

Career Takes

The direction and progression one's professional life undertakes over time.

Consistency Motive

A desire to get feedback that confirms what the person already believes about himself or herself.

Standardized Exam

A type of test that is administered and scored in a consistent manner to ensure fairness and to measure students' performance against common criteria.