If, in a Perfectly Competitive Industry, the Market Price Facing

question 253

Multiple Choice

If, in a perfectly competitive industry, the market price facing a firm is above its average total cost at the output where marginal revenue equals marginal cost, then

• A)firms are breaking even.
• B)new firms are attracted to the industry.
• C)existing firms will exit the industry.
• D)market supply will remain constant.

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Definitions:

Dissociative Disorder

A mental disorder characterized by a disconnection and lack of continuity between thoughts, memories, surroundings, actions, and identity.

Alternating Personalities

A psychological condition, often a symptom of dissociative identity disorder, where an individual shows two or more distinct and alternating personalities, each with its own pattern of perceiving and interacting with the world.

Dissociative Disorder

A mental illness involving disruptions or breakdowns of memory, awareness, identity, or perception.

Psychologists

Professionals specializing in the study of the mind and behavior, often helping individuals cope with life issues and mental health challenges.