Examlex
Explain how a stock market crash has the potential to lead to a recession in an economy.
Competitive Firm
A firm operating in a market where it has no power to influence market prices and typically faces many competitors with similar products.
Normal Profits
The minimum level of profit needed for a company to remain competitive in the market; it occurs when economic profit is zero after accounting for all costs, including opportunity costs.
Purely Competitive
A market structure characterized by a large number of small firms, identical products, and free entry and exit from the market, leading to price-taking behavior.
Long Run
A period in which all factors of production and costs are variable, allowing complete adjustment to changes.
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