If a Typical Firm in a Perfectly Competitive Industry Is

question 177

Multiple Choice

If a typical firm in a perfectly competitive industry is earning profits, then

• A)all firms will continue to earn profits.
• B)new firms will enter in the long run causing market supply to decrease, market price to rise, and profits to increase.
• C)new firms will enter in the long run causing market supply to increase, market price to fall, and profits to decrease.
• D)the number of firms in the industry will remain constant in the long run.

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Definitions:

Classical Conditioning

The kind of learning in which an unconditioned response (such as salivating) that is naturally elicited by one stimulus (such as food) becomes elicited also by a new, conditioned stimulus (such as a bell).

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A condition caused by consuming contaminated food or beverages with harmful bacteria, viruses, or other pathogens.

Nostalgia

A sentimental longing or wistful affection for the past, typically for a period or place with happy personal associations.

Violent Video Games

Video games that involve and often emphasize actions that cause harm or physical violence towards characters or other players.