In the Long Run, If Price Is Less Than Average

question 42

Multiple Choice

In the long run, if price is less than average cost

• A)there is an incentive for firms to exit the market.
• B)there is profit incentive for firms to enter the market.
• C)the market must be in long-run equilibrium.
• D)there is no incentive for the number of firms in the market to change.

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Definitions:

Contractions

The tightening and relaxation of uterine muscles, experienced by pregnant women, that can indicate the onset of labor or be part of Braxton Hicks practice contractions.

Transition Phase

In labor and childbirth, this term describes the final phase of the first stage of labor, characterized by intense contractions and dilation of the cervix from 7 to 10 centimeters.

Cervix Dilation

The opening of the cervix, the lower part of the uterus, during labor, measured in centimeters from 0 (closed) to 10 (fully dilated).

Stage Labor

The process of childbirth, divided into distinct phases or stages, beginning with the onset of contractions and ending with the delivery of the placenta.