If All Firms in a Perfectly Competitive Industry Are Experiencing

question 107

Multiple Choice

If all firms in a perfectly competitive industry are experiencing economic losses, then:

• A)some firms will exit the industry, until economic profits are positive.
• B)some firms will exit the industry, until accounting profits equal zero.
• C)all existing firms will stay in the industry, hoping for better times.
• D)some firms will exit the industry, until economic profits equal zero.

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Definitions:

Birth Mother

The biological mother of a child, as opposed to an adoptive mother or stepmother.

Direct Contact

The physical interaction between two or more individuals which can lead to the transmission of communicable diseases.

Nonindustrialized

Referring to countries or regions with less developed industrial infrastructure and lower levels of economic productivity.

Sibling Relationships

The dynamic and interactions that exist between brothers and sisters.