If a Typical Firm in a Perfectly Competitive Industry Is

question 135

Multiple Choice

If a typical firm in a perfectly competitive industry is incurring losses, then

• A)all firms will continue to lose money.
• B)some firms will exit in the long run, causing market supply to decrease and market price to rise, increasing profits for the remaining firms.
• C)some firms will exit in the long run, causing market supply to decrease and market price to fall, increasing losses for the remaining firms.
• D)some firms will enter in the long run, causing market supply to increase and market price to rise, increasing profit for all firms.

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Definitions:

Total Row

A row in a table or spreadsheet that calculates and displays the sum or other aggregate function of data in a column or columns.

Criterion

A principle or standard by which something may be judged or evaluated.

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In databases and spreadsheets, a designated row used to enter conditions or criteria for filtering or querying data.

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A tool in database software that assists in creating complex formulas to calculate and analyze data.