If a Typical Firm in a Perfectly Competitive Industry Is

question 135

Multiple Choice

If a typical firm in a perfectly competitive industry is incurring losses, then

• A)all firms will continue to lose money.
• B)some firms will exit in the long run, causing market supply to decrease and market price to rise, increasing profits for the remaining firms.
• C)some firms will exit in the long run, causing market supply to decrease and market price to fall, increasing losses for the remaining firms.
• D)some firms will enter in the long run, causing market supply to increase and market price to rise, increasing profit for all firms.

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Definitions:

Goal Sharing

The practice of disclosing or discussing personal objectives with others to create a sense of accountability and support.

Collective Ranking

Collective ranking involves ordering or classifying a group of items or individuals based on shared criteria or evaluations by a community or group.

Uncertainty Avoidance

A cultural dimension that describes the degree to which individuals or societies are uncomfortable with ambiguity, uncertainty, and unstructured situations.

Equality Matching

A form of social justice and reciprocity where individuals aim to ensure that resources and responsibilities are distributed equally among group members.