In the Long Run,the Entry of New Firms in a Competitive

question 50

Multiple Choice

In the long run,the entry of new firms in a competitive industry _____

• A)drives up the equilibrium price.
• B)eliminates economic profits.
• C)reduces the equilibrium quantity.
• D)makes the demand curve facing each firm more inelastic.
• E)makes the market demand curve steeper.

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Definitions:

Maintaining

Keeping something in an existing state or condition, often requiring regular check and care.

Motivated

Being driven or encouraged to act or accomplish something, often due to personal desire or external rewards.

Motivational Strategy

Techniques or plans designed to inspire individuals towards achieving certain goals or improving performance.

Maslow's Hierarchy

A theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.