Which of the Following Statements About Perfectly Competitive Markets Is

question 76

Multiple Choice

Which of the following statements about perfectly competitive markets is not correct?

• A)In the short run,firms can earn economic profits or suffer economic losses.
• B)The market demand curve is downward sloping.
• C)The demand curve facing an individual firm is perfectly elastic.
• D)In the long run,firms can earn economic profits or suffer economic losses.
• E)In the long run,firms can enter or exit the market.

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Definitions:

Normal Fault

A type of fault where the hanging wall moves downward relative to the footwall due to extensional forces, common in divergent plate boundaries.

Fault Scarp

A steep slope or cliff formed directly by movement along a fault line, indicative of tectonic activity.

Earthquake

The shaking of the surface of the Earth resulting from a sudden release of energy in the Earth's lithosphere that creates seismic waves.

Volcanic Explosions

Violent eruptions from a volcano, releasing magma, gas, and debris with great force and often with little warning.