Which of the Following Is True

question 327

Multiple Choice

Which of the following is true?

• A) When firms in a price-taker market are earning zero economic profit, they will shut down.
• B) When firms in a price-taker market are earning positive economic profits, new firms will enter the industry causing the market price to fall until the firms in the industry are earning only zero economic profit.
• C) When firms in a price-taker market are earning economic losses, some firms will exit the industry causing the market price to rise until the remaining firms are earning zero economic profit.
• D) Both b and c are true.

Understand the anatomical distinctions and functional significance of various lobes of the brain and their association areas.

Understand the concept of market equilibrium and how shifts in supply and demand affect equilibrium price and quantity.

Identify and define substitutes and complements and their impact on demand.

Analyze the effects of market and government actions on market equilibrium.

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Definitions:

Unsecured

Refers to loans or debts that are not backed by collateral, relying on the borrower's creditworthiness instead.

Payroll Taxes Payable

Taxes owed to the government by an employer, based on employee wages, that have been incurred but not yet paid.

Financial Affairs

The management and administration of monetary activities, investments, and financial strategies of an individual or organization.

Pledged Assets

Assets that are offered as security or collateral for a loan or obligation.