If a Typical Firm in a Perfectly Competitive Industry Is

question 135

Multiple Choice

If a typical firm in a perfectly competitive industry is incurring losses, then

• A)all firms will continue to lose money.
• B)some firms will exit in the long run, causing market supply to decrease and market price to rise, increasing profits for the remaining firms.
• C)some firms will exit in the long run, causing market supply to decrease and market price to fall, increasing losses for the remaining firms.
• D)some firms will enter in the long run, causing market supply to increase and market price to rise, increasing profit for all firms.

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Definitions:

Hero

A person admired for their courage, outstanding achievements, or noble qualities, often the protagonist in stories.

Emotionally Charged

Referring to situations or subjects that evoke strong emotional responses.

Complexes

A collection of thoughts, feelings, attitudes, and memories that focus on a particular concept, often unconsciously influencing behavior.

Supraordinate

A term typically used in social psychology to describe a group identity that transcends the smaller group identifications of its members, promoting broader social unity.