The Phenomenon That Causes Resources in Perfectly Competitive Industries to Shift

question 131

Multiple Choice

The phenomenon that causes resources in perfectly competitive industries to shift toward their highest valued use in the long run is for entry and exit to occur until ________.

• A) the market price equals the minimum of marginal cost
• B) the market price equals the minimum of average variable cost
• C) the market price equals the minimum of average total cost
• D) all firms earn positive economic profits

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Definitions:

Pollution

The introduction of harmful substances or products into the environment, causing adverse effects on living organisms and ecological systems.

Modern Agricultural Practices

These practices involve the use of technology, chemical inputs, and advanced breeding techniques to increase crop yield and farming efficiency.

Soil Erosion

The removal of topsoil by wind, water, or other natural agents, leading to the degradation of land.

Soil Fertility

The quality of soil that enables it to provide essential nutrients to plants for growth, typically influenced by the soil's physical, chemical, and biological properties.