In a Perfectly Competitive Industry Over the Long Run

question 8

Multiple Choice

In a perfectly competitive industry over the long run:

• A)economic profits tend to persist.
• B)the number of firms in an industry grows.
• C)economic losses tend to persist.
• D)economic profits and losses are driven towards zero by entry and exit.

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Definitions:

Health Care Reform

A process of changing policies, regulations, and practices to improve the quality, accessibility, and cost-effectiveness of health care systems.

Taxes Rise

An increase in the amount of money that taxpayers must pay to the government, typically resulting from legislative changes.

Health Care Reform

A broad term for policies and measures aimed at improving healthcare system performance, increasing access to healthcare, and ensuring better health outcomes.

Initial Endowment

The initial allocation of income, wealth, or resources that an individual or firm possesses before entering into any economic transactions.