If a Firm in a Perfectly Competitive Industry Experiences Persistent

question 71

Multiple Choice

If a firm in a perfectly competitive industry experiences persistent losses, what should it do in the long run?

• A)Shut down temporarily and wait for market conditions to change.
• B)Exit the industry.
• C)Raise its price to cover average total cost.
• D)Continue to operate if it can raise the demand for its product through advertising and quality improvements.

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Definitions:

B Cells

A type of white blood cell part of the immune system, responsible for producing antibodies to fight infections.

Dendritic Cells

Immune cells that process antigen material and present it on their surface to T cells, acting as messengers between the innate and the adaptive immune systems.

Macrophages

A type of white blood cell that engulfs and digests cellular debris, bacteria, and other foreign substances in the body.

Antigen Presenting Cells

Specialized immune cells that process and present antigens to T cells, initiating an immune response.