A Cost-Saving Innovation in a Perfectly Competitive Industry Will Lead

question 96

Multiple Choice

A cost-saving innovation in a perfectly competitive industry will lead to:

• A)entry by new firms.
• B)economic profits for new firms.
• C)economic profits for a few firms for a short time.
• D)a leftward shift of the industry supply curve.

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Definitions:

Trial Balance

A bookkeeping worksheet that lists the balances of all ledgers in two columns, typically debit and credit, to ensure that the total debits equal the total credits.

Relabeled

This term, in the context provided, is not clearly defined. Without more specific usage, "Relabeled" is typically understood as changing the label or designation of something, but this doesn't have a direct business or finance definition.

Financial Statements

Compiled reports detailing a company's financial status, including balance sheets, income statements, and more.

Loan Request

A formal application to a lender asking for funds to be borrowed under specified terms.