In Perfectly Competitive Markets, an Implication of Entry and Exit

question 17

Multiple Choice

In perfectly competitive markets, an implication of entry and exit in response to economic profit and loss is that:

• A)firms must earn positive economic profits in the long run.
• B)firms will produce the quantity that minimizes average variable costs in the short run.
• C)firms will produce the quantity that minimizes average total costs in the long run.
• D)market demand is completely elastic.

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Definitions:

Wicked Problems

Complex issues that are difficult to define and solve because they are intertwined with other problems and have no clear solution.

Stable Problem Statements

Clearly defined issues or challenges that remain consistent over time and do not change significantly.

Alternative Solutions

Different options or approaches to solving a problem or addressing a situation.

Entrepreneurial Activities

Actions or tasks that are undertaken by entrepreneurs in pursuit of establishing, managing, and growing their ventures.