In Both Price-Taker and Competitive Price-Searcher Markets, Short-Run Economic Profits

question 125

Multiple Choice

In both price-taker and competitive price-searcher markets, short-run economic profits will lead to

• A) firms being able to sustain those economic profits into the long run.
• B) the exit of firms from the market and the eventual restoration of zero long-run economic profits.
• C) the entry of additional firms into the market and the eventual restoration of zero long-run economic profits.
• D) none of the above.

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Definitions:

Job Satisfaction Instrument

A tool or survey designed to measure the degree of contentment a worker feels towards their job.

Voluntary Turnover

Turnover initiated by employees (often when the organization would prefer to keep them).

Role Ambiguity

Uncertainty about what the organization expects from the employee in terms of what to do or how to do it.

Involuntary Turnover

Turnover initiated by an employer (often with employees who would prefer to stay).