If Perfect Competitors Are Making Profits

question 82

Multiple Choice

If perfect competitors are making profits

• A)new firms will enter the industry and market price will fall.
• B)new firms will enter the industry and market price will rise.
• C)firms will leave the industry and market price will rise.
• D)firms will leave the industry and market price will fall.

Apply the concept of marginal analysis in production decisions.

Describe the differences between types of goods based on income changes.

Analyze the effects of price changes on revenue depending on demand elasticity.

Understand concepts of normal and inferior goods.

---

Definitions:

Type D Personality

A personality type characterized by high levels of negative affectivity and social inhibition.

Agreeableness

A personality trait characterized by warmth, kindness, and a cooperative attitude.

Health Benefits

The positive effects on physical and/or mental well-being that come from various activities, dietary habits, or healthcare treatments.

Optimism

A mental attitude characterized by hope and confidence in success and a positive future.