If a Typical Firm in a Perfectly Competitive Industry Is

question 177

Multiple Choice

If a typical firm in a perfectly competitive industry is earning profits, then

• A)all firms will continue to earn profits.
• B)new firms will enter in the long run causing market supply to decrease, market price to rise, and profits to increase.
• C)new firms will enter in the long run causing market supply to increase, market price to fall, and profits to decrease.
• D)the number of firms in the industry will remain constant in the long run.

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Definitions:

Perfect Correlation

A statistical relationship where two variables move in sync, either always increasing or decreasing together, represented by a correlation coefficient of +1 or -1.

Negative Correlation

A relationship between two variables in which one variable increases as the other decreases.

Outdoor Activities

Recreational or leisure activities that take place in natural settings, promoting physical health and well-being.

Video Games

Electronic games played through various devices, providing entertainment and sometimes educational content through interactive digital environments.