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:

Silent Customer

A consumer who does not vocally express dissatisfaction with a service or product, often providing little feedback that businesses can act on.

Attitude

A consistent pattern of thoughts or emotions regarding a person or thing, usually manifested in how one acts.

Internal Customers

Employees or departments within an organization that serve other employees or departments, treating them as customers to fulfill their internal needs and demands.

Delivering Bad News

The process of communicating unfavorable or upsetting information to someone in a thoughtful, empathetic, and clear manner.