If a Typical Firm in a Perfectly Competitive Industry Is

question 177

Multiple Choice

If a typical firm in a perfectly competitive industry is earning profits, then

• A)all firms will continue to earn profits.
• B)new firms will enter in the long run causing market supply to decrease, market price to rise, and profits to increase.
• C)new firms will enter in the long run causing market supply to increase, market price to fall, and profits to decrease.
• D)the number of firms in the industry will remain constant in the long run.

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Definitions:

Earth's History

A chronological description of the physical and biological events that have occurred on Earth from its formation to the present.

Precambrian

A very long interval of geologic time, from the formation of the solid earth to the beginning of the Paleozoic; it is equivalent to 90% of geologic time.

Precambrian

Referring to the eon that constitutes the earliest part of Earth's history, which ended approximately 542 million years ago.

Geologic Time

The exceptionally long period of time dealt with by geology; the time extending from the formation of Earth to the beginning of written history.