Which of the Following Would Be Most Likely If Firms

question 129

Multiple Choice

Which of the following would be most likely if firms in a competitive price-searcher market were earning economic profit?

• A) Production inefficiencies would persist until the profit was eliminated.
• B) Firms would decrease their rate of output in the short run, causing a decline in profitability in the market.
• C) New firms would enter the market, resulting in fewer sales by existing firms.
• D) All firms in the market would continue to produce at their current levels and continue to charge the same price.

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Definitions:

Cushion

A soft bag of material used to provide comfort, support, or decoration on furniture.

Maintaining Flexibility

The act of regularly engaging in activities that preserve or enhance the range of motion and elasticity of the muscles and tendons.

Joints

The points at which two bones connect in the body, allowing for movement and flexibility.

Ill-Fitting Clothing

Clothing that does not fit properly on the body, often leading to discomfort or style issues.