An Implication of Entry and Exit in Response to the Profit

question 111

Multiple Choice

An implication of entry and exit in response to the profit incentive is that,for perfectly competitive firms,

• A)no firm accepts zero economic profits in the long run.
• B)firms produce the quantity that minimizes average variable costs in the short run.
• C)firms produce the quantity that minimizes average total costs in the long run.
• D)demand is completely inelastic.

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Definitions:

Women's Wages

The average compensation or income earned by women for their labor or services, often discussed in the context of gender pay gap issues.

Men's Wages

The earnings received by men for their labor or services, often analyzed in comparison to women's wages for discussions on gender wage gaps.

Auto Repair

Maintenance and repair services for vehicles, often performed by mechanics in garages or workshops.

Discriminatory Wage Gap

The difference in wages earned by workers not based on skills or job type but on arbitrary factors like race, gender, or ethnicity.