In a Long-Run Equilibrium in a Perfectly Competitive Industry, No

question 1

Multiple Choice

In a long-run equilibrium in a perfectly competitive industry, no firm will want to

• A) exit the industry because it is earning an amount at least equal to its opportunity cost
• B) enter the industry because it will not be able to make extra-normal profits
• C) Both answers are correct

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Definitions:

Phenomenon

An observable event or fact, especially one that is not fully understood.

Means-End Analysis

A problem-solving strategy in which you continually evaluate the difference between your current state and your goal, and consider how to use your resources to reduce the difference.

Subroutines

In problem solving, specific procedures for solving familiar, welldefined problems.

Problem-Solving Strategy

A problem-solving strategy is a method or approach used to address and find solutions for complex or difficult issues.