If Firms in a Perfectly Competitive Market Are Incurring Economic

question 146

Multiple Choice

If firms in a perfectly competitive market are incurring economic losses,then as time passes firms ________ and the market ________.

• A) enter; demand curve shifts leftward
• B) enter; supply curve shifts rightward
• C) exit; demand curve shifts leftward
• D) exit; supply curve shifts rightward
• E) exit; supply curve shifts leftward

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Definitions:

Closing Entry

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent ones, preparing the accounts for the next period.