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.

---

Definitions:

Employee Turnover

The rate at which employees leave a company and are replaced by new employees, often used as an indicator of workplace satisfaction and stability.

Certification Election

A formal process conducted by an external body, often a government labor board, in which employees vote to determine whether or not they wish to be represented by a particular labor union.

Workplace Improvement

Efforts and initiatives undertaken to enhance the working conditions, productivity, and overall environment of a workplace.

Certification Election

A voting process conducted by a labor board to determine whether workers wish to be represented by a union and, if so, which union will serve as their bargaining agent.