If Firms Are Making Profits Under Perfect Competition,in the Long

question 61

Multiple Choice

If firms are making profits under perfect competition,in the long run the industry supply will ______ and price will _____.

• A)rise;rise
• B)fall;fall
• C)fall;rise
• D)rise;fall

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Definitions:

Total Manufacturing Costs

Total manufacturing costs include all expenses directly related to the production of goods, including raw materials, labor, and manufacturing overhead.

Compute

To calculate or solve a problem using mathematical or logical operations.

Month

A unit of time used in calendars that is approximately based on the natural period related to the motion of the moon; months vary in length but are roughly around 30 days.

Internal Control System

A set of processes and procedures implemented by an organization to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.