When Managers of Firms in a Competitive Market Observe Falling

question 22

Multiple Choice

When managers of firms in a competitive market observe falling profits, they may infer that the market is experiencing

• A)a violation of conventional market forces.
• B)over-investment.
• C)the entry of new firms.
• D)too few firms in the market.

---

Definitions:

Adaptations

Adjustments or changes made by organisms or systems in response to environmental conditions or challenges.

Transformations

Significant changes or alterations in form, nature, or appearance.

Written Communication

The process of exchanging information or ideas through the written word, including traditional paper documents, emails, texts, and social media posts.

Presenting Ideas

The act of communicating new concepts or proposals to others, often with the intention of convincing or influencing the audience.