If a Firm in a Perfectly Competitive Industry Experiences Persistent

question 82

Multiple Choice

If a firm in a perfectly competitive industry experiences persistent losses, in the long run it should

• A)shut down temporarily and wait for market conditions to change.
• B)exit the industry.
• C)raise its price to cover average total cost.
• D)continue to operate if it can raise the demand for its product through advertising and quality improvements.

---

Definitions:

Excess Carbohydrates

Carbohydrates consumed in quantities greater than the body's needs, potentially leading to various health issues.

Plants

Plants are multicellular organisms in the kingdom Plantae that use photosynthesis to convert light energy into chemical energy, which fuels their activities and growth.

Starch

Coiled polysaccharide of glucose monomers. Principal form of stored sugars in plants.

Fatty Acid

Organic compound that consists of an acidic carboxyl group “head” and a long hydrocarbon “tail.” Can be saturated or unsaturated.