In the Long Run,perfectly Competitive Firms Will Exit the Market

question 184

Multiple Choice

In the long run,perfectly competitive firms will exit the market if the price is

• A) higher than average variable cost.
• B) equal to average total cost.
• C) less than average total cost.
• D) equal to average fixed cost.
• E) equal to marginal revenue.

---

Definitions:

Loss Frames

A communication tactic that presents choices or outcomes in terms of potential losses, influencing decision-making and behavior.

Concrete Information

Specific, detailed data or facts that are grounded in reality and can be proven through direct observation or experience.

Expectancy Disconfirmation Model

A theory that suggests consumer satisfaction is based on the gap between expected and actual performance of a product or service.

Consumer Dissatisfaction

A negative emotional state that occurs when a product or service fails to meet a consumer's expectations.