-If the Firm Represented in Figure 11-7 Is Typical of Other

question 58

Multiple Choice

-If the firm represented in Figure 11-7 is typical of other firms in the industry,then,as the long run approaches,

• A)some firms will exit,and the demand curves facing the remaining firms will shift to the left
• B)some firms will exit,and the demand curves facing the remaining firms will shift to the right
• C)some firms will enter,and the demand curves facing the remaining firms will shift to the left
• D)some firms will enter,and the demand curves facing the remaining firms will shift to the right
• E)the industry will eventually disappear

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Definitions:

Reasonable

A standard of fairness, practicality, and moderation, often used to judge actions or decisions in legal contexts.

Illegal Term

A provision in a contract or agreement that is not enforceable by law because it violates legal statutes or principles.

Sale of Business

The process of transferring ownership of a business from one party to another.

Restrictive Covenant

A clause in a contract which limits certain actions of the parties, often used in employment and real estate agreements.