When Firms in a Competitive Market Have Different Costs, It

question 63

Multiple Choice

When firms in a competitive market have different costs, it is likely that

• A)free entry and exit in the market will be violated.
• B)the market will no longer be considered competitive.
• C)long-run market supply will be downward sloping.
• D)some firms will earn positive economic profits in the long run.

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Definitions:

Classical Freudian

Refers to the psychological theories and therapeutic methods developed by Sigmund Freud that emphasize unconscious motives and conflicts as the roots of human behavior.

Object Relations

A theory in psychology that examines the way individuals relate to others and situations in their environment, primarily based on early life experiences.

Cognitive

Pertaining to mental processes such as perception, memory, judgment, and reasoning.

Self

The individual's awareness of their own identity and personal characteristics, forming the basis of self-concept.