When the Conditions in a Competitive Price-Taker Market Are Such

question 66

Multiple Choice

When the conditions in a competitive price-taker market are such that the firms are consistently unable to cover their production costs,

• A) the firms will suffer short-run economic losses that will be exactly offset by long-run economic profits.
• B) all firms will go out of business since consumers will not pay prices that enable firms to cover their production costs.
• C) some firms will exit from the industry, and market price will rise until the remaining firms can earn the normal rate of return.
• D) resource prices will increase, competition will decline, and eventually the firms in the industry will earn monopoly profit.

---

Definitions:

Gender

Gender relates to the roles, behaviors, activities, expectations, and societal constructs associated with being male, female, or non-binary.

Male Hormones

Hormones, such as testosterone, that play crucial roles in male development and reproductive functions.

Female Hormones

Hormones, such as estrogen and progesterone, that play crucial roles in regulating various bodily functions and reproductive processes in females.

Tomboy

A girl who exhibits behaviors, interests, or characteristics typically associated with boys, often involving a preference for activities regarded as masculine.