If Prices Fall in a Perfectly Competitive Industry, Then the Firms

question 80

Multiple Choice

If prices fall in a perfectly competitive industry, then the firms in that industry will in the short run:

• A)not decrease in number unless price falls below ATC for some firms.
• B)try to reduce production or shut down.
• C)keep output at the same level but make losses.
• D)advertise.
• E)both A and B.

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Definitions:

Initiative Versus Guilt

Erikson's third stage of psychosocial development, where children begin to assert control and power over their environment through directed play and other activities.

Cognitive Development

The progression of learning and development of intelligence, conscious thought, and problem-solving ability that occurs from infancy through adulthood.

Conservation Problems

Cognitive tasks that assess the understanding that quantity remains the same despite changes in shape or appearance, often used in developmental psychology.

Hierarchical Classification

A system of organization where entities are arranged in a ranked or graded order, often used in biological taxonomy to classify living organisms into successively more inclusive groups.