When Existing Firms in a Competitive Market Are Profitable, an Incentive

question 438

Multiple Choice

When existing firms in a competitive market are profitable, an incentive exists for

• A)new firms to seek government subsidies that would allow them to enter the market.
• B)new firms to enter the market, even without government subsidies.
• C)existing firms to raise prices.
• D)existing firms to increase production.

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Definitions:

Assertiveness Skills

The ability to express one's views and stand up for oneself in a respectful and confident manner, without being aggressive.

Problem

is a situation, task, or concept that presents difficulty or requires a solution.

Personality Traits

Enduring characteristics that describe an individual's behavior, attitude, and emotions.

Team Leader

A person who guides, directs, and motivates team members to achieve set goals and objectives.