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:

Quarterly Observations

Data points or measurements that are collected or reported every three months within a year.

Seasonal Indexes

Numerical values used to adjust data for seasonal effects, allowing comparison across different times of a year by normalizing seasonal variations.

Quarterly Sales

The total income or revenue generated by sales activities in a quarter, often analyzed to assess financial health and performance trends in businesses.

Cyclical Effect

Periodic fluctuations observed in data or economic activity over regular time intervals, often related to business or economic cycles.