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As Long as Firms in a Perfectly Competitive Industry Earn

question 37

True/False

As long as firms in a perfectly competitive industry earn extra-normal profits, other firms will be attracted and will decide to enter the industry.


Definitions:

Secured Property

Refers to assets that are pledged as collateral for a loan, providing the lender with security that the loan will be repaid.

Perfect

In legal and financial contexts, this term often refers to the act of making a security interest or claim valid and enforceable against third parties.

Security Interest

A legal claim or lien on collateral that has been pledged, usually to secure the repayment of a loan.

Secured Party

A lender or creditor who holds an interest in the collateral provided by the debtor to secure a loan or obligation.

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