In the Long Run,the Entry of New Firms in a Competitive

question 50

Multiple Choice

In the long run,the entry of new firms in a competitive industry _____

• A)drives up the equilibrium price.
• B)eliminates economic profits.
• C)reduces the equilibrium quantity.
• D)makes the demand curve facing each firm more inelastic.
• E)makes the market demand curve steeper.

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Definitions:

Commercial Leases

Agreements between landlords and businesses to rent commercial properties, such as offices, retail spaces, or warehouses, under specific terms.

Shopping Centre Leases

Contracts that dictate the terms under which a retailer can use space within a shopping center, including duration, rent, and other conditions.

Promotional Activities

Marketing efforts undertaken to increase awareness, interest, and sales of a product or service through various methods such as advertising, sales promotions, and public relations.

Legislation Unconstitutional

A declaration that a law or statute conflicts with the constitution and is therefore invalid and unenforceable.