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

question 74

Multiple Choice

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

• A) positive economic profits are being earned.
• B) firms will enter, causing the price to increase.
• C) firms will exit, causing the price to drop.
• D) None of these is true.

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Definitions:

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Issued But Not Outstanding

Shares that have been issued by a company but have been bought back and are held in the company's treasury, thus not currently available to investors.

Rosenhan Experiment

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