If Firms in a Perfectly Competitive Industry Are Experiencing Losses

question 226

Multiple Choice

If firms in a perfectly competitive industry are experiencing losses in the short run,we would expect firms to exit this industry and cause the market supply curve to ________.

• A) shift left until Price = Minimum average total cost
• B) shift left until Price = Minimum average variable cost
• C) shift right until Price = Minimum average total cost
• D) shift right until Price = Minimum average variable cost

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Definitions:

Boron Atom

The smallest particle of the element boron, with an atomic number of 5, known for its applications in fiberglass, semiconductors, and agriculture.

Trigonal Planar

A molecular geometry where a central atom is connected to three other atoms placed at the corners of an equilateral triangle.

Molecular Polarity

Molecular polarity refers to the distribution of electrical charges over the atoms in a molecule, affecting its interaction with other molecules and solvents.

Solvent Interaction

The interaction between a solvent and solute which leads to the dissolution of the solute into the solvent.