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:

Memory Size

The total amount of data storage capacity available in a memory unit or system.

Plug-In Compartments

Designed sections within an electronic device that allow for easy insertion and removal of components or modules.

Normally Open Contact

A Normally Open Contact is a type of switch or relay contact that is open (disconnected) when in its default state, closing (connecting) only when activated.

Logic 0

A binary state that represents a false condition or off state in digital electronics.