Figure 9-18 -Refer to Figure 9-18.Given the Current Market Conditions,in the Long

question 187

Multiple Choice

Figure 9-18

-Refer to Figure 9-18.Given the current market conditions,in the long run,

• A)new firms will enter the industry and market price will fall.
• B)firms will exit the industry and market price will rise.
• C)firms will neither enter nor exit because the market is in long-run equilibrium.
• D)firms will maintain their current level of economic profit.

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Definitions:

Cognitive Dissonance

A psychological phenomenon that occurs when an individual experiences discomfort due to holding conflicting beliefs or values.

Defensive Attributions

Cognitive processes used to deflect blame from oneself and to prevent feelings of guilt or inadequacy, often by assigning responsibility to external factors.

Self-Serving Bias

A common tendency to attribute success to personal characteristics and failures to external factors for self-enhancement.

Actor-Observer Bias

A cognitive bias where individuals attribute their own actions to external situations while attributing others' actions to their personalities or dispositions.