When Business Managers of Firms in a Competitive Market Observe

question 69

Multiple Choice

When business managers of firms in a competitive market observe falling profits, they are likely to infer that the market is characterised by:

• A)a violation of conventional market forces
• B)rising prices
• C)too few firms in the market
• D)over-investment

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Definitions:

Orbicularis Oculi

A circular muscle that surrounds the eye socket and allows for the closing of the eyelids.

Levator Palpebrae Superioris

A muscle in the orbit of the eye responsible for raising the upper eyelid, enabling the eye to open.

Eyelid

Movable fold of skin in front of the eyeball; also called palpebra.

Inferior Rectus

A muscle in the eye that contributes to downward gaze or moving the eye downward.