When Existing Firms in a Competitive Market Are Profitable,which of the Following

question 177

Multiple Choice

When existing firms in a competitive market are profitable,which of the following has an incentive

• A)new firms to seek government subsidies that would allow them to enter the market
• B)new firms to enter the market, even without government subsidies
• C)existing firms to raise prices
• D)existing firms to increase production

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Definitions:

Professionalism

The competence, skill, and standards expected of a professional in their conduct and work.

Legal Obligation

A duty enforced by law, requiring an individual or entity to conform to certain actions or to refrain from certain actions.

Ethical Obligation

A moral duty that guides behavior and decision-making, based on societal, professional, or personal standards of right and wrong.

Prosecutor

A legal representative who brings charges against a suspect in a court of law and leads the case against the defendant.