In a Perfectly Competitive Market,when the Price Is Greater Than

question 14

Multiple Choice

In a perfectly competitive market,when the price is greater than the minimum average total cost for most firms,some will:

• A) exit until the price drops to equal minimum ATC.
• B) enter until the price drops to equal minimum ATC.
• C) exit until the price increases to equal minimum ATC.
• D) enter until the price increases to equal minimum ATC.

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Definitions:

Business Begins

This term implies the initial stage or inception of a commercial enterprise or venture.

Financing

The process of providing funds for business activities, making purchases, or investing.

Management Consultant

is a professional advisor who helps organizations improve their performance, primarily through the analysis of existing organizational problems and the development of plans for improvement.

Financial Condition

The status of an entity's finances, encapsulating its assets, liabilities, equity, and overall financial health and stability.