In the Long Run When a Perfectly Competitive Firm Experiences

question 372

Multiple Choice

In the long run when a perfectly competitive firm experiences positive economic profits

• A) firms exit the industry, the market supply curve shifts rightward, and the market price falls.
• B) firms enter the industry, the market supply curve shifts rightward, and the market price falls.
• C) firms exit the industry, the market supply curve shifts leftward, and the market price rises.
• D) firms enter the industry, the market supply curve shifts rightward, and the market price rises.

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Definitions:

Formal

Adhering to established conventions or requirements, often characterized by structure, rules, or official procedures.

Deliberate

To think over or consider something carefully and intentionally before making a decision or taking action.

Positive Compatibility

The degree to which individuals, systems, or concepts can coexist or work together in harmony, producing beneficial outcomes.

Cutting Pattern

The designed arrangement or plan for cutting materials in order to minimize waste or maximize efficiency.