In the Long Run, If Price Is Less Than Average

question 42

Multiple Choice

In the long run, if price is less than average cost

• A)there is an incentive for firms to exit the market.
• B)there is profit incentive for firms to enter the market.
• C)the market must be in long-run equilibrium.
• D)there is no incentive for the number of firms in the market to change.

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Definitions:

Electricity

A fundamental form of energy observable in positive and negative forms, which occurs naturally as in lightning or is produced as in generators.

Machine Cycle

The basic operational process of a computer, involving fetching, decoding, executing instructions, and then storing results, repeated for each instruction.

Network

A group of interconnected computers, servers, and other devices that can communicate and share resources with each other.

Fetch

The act of retrieving data from a database or another digital repository.