If the Typical Firm in a Perfectly Competitive Market Was

question 157

Multiple Choice

If the typical firm in a perfectly competitive market was depicted in the graph below,what would be most likely to occur?

• A) New firms would be likely to enter, increasing the market price.
• B) New firms would be likely to enter, decreasing the market price.
• C) Existing firms would be likely to exit, increasing the market price.
• D) Existing firms would be likely to exit, decreasing the market price.

---

Definitions:

Imagery

The use of vivid or figurative language to represent objects, actions, or ideas.

Messages

Information or communication sent from one person or entity to another, typically through a medium.

Characters

The personalities or figures that play a part in a story, narrative, or a specific context.

Twitter

A social media platform that allows users to post and interact with messages known as "tweets," facilitating public and private communication.