If the Demand Increases in a Perfectly Competitive Market,firms Will

question 47

Multiple Choice

If the demand increases in a perfectly competitive market,firms will likely:

• A)experience a loss due to increased competition.
• B)set prices artificially higher permanently.
• C)enter the market in hopes of capturing some profits.
• D)None of these is true.

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Definitions:

Expendable Trust Fund

A fund consisting of assets held in a trust that can be used up or expended, typically for designated purposes as per the trust's terms.

Modified Accrual Accounting

An accounting method that combines aspects of both accrual and cash accounting, recognizing revenues when they are earned and expenses when they are incurred or paid.

Long-Term Debt

Financial obligations of a company that are due more than one year in the future, often including bonds, mortgages, and leases.

Permanent Fund

A fund established by a government or organization meant to provide a permanent source of income.