In Perfect Competition,as the Long Run Approaches,economic Losses Will Cause

question 143

Multiple Choice

In perfect competition,as the long run approaches,economic losses will cause

• A)the exit of existing firms,shifting the market supply curve to the left
• B)government regulation
• C)technological innovation
• D)inflation
• E)a favorable shift in tastes and preferences

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Definitions:

Money Invested

The total amount of financial resources allocated to a particular investment, asset, or project with the expectation of receiving future returns.

Individual Security

A financial instrument such as a stock or bond that represents an ownership stake or debt obligation in a company or entity.

Total Risk

The sum of systematic and unsystematic risks affecting an investment or portfolio.

Systematic Risk

The risk inherent to the entire market or market segment, often impossible to mitigate through diversification alone.