If the Typical Firm in a Perfectly Competitive Market Is

question 100

Multiple Choice

If the typical firm in a perfectly competitive market is earning positive economic profits then which of the following would be expected to happen?

• A)Firms will exit the market.
• B)New firms will enter the market.
• C)There will be neither entry nor exit in this market.
• D)There will soon be a depression in the market.

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Definitions:

Over-Confident

Describes a state of being excessively confident without sufficient reason or evidence, often leading to miscalculations or errors in judgment.

Low Self-Esteem

A condition where an individual holds a low or negative perception of their own worth or value.

Vulnerable to Manipulation

The state of being easily influenced or controlled by others, often in a deceptive or unfair manner.

Critical

Involving the objective analysis and evaluation of an issue in order to form a judgment.