In the Long Run, Competitive Firms Want to Exit Industries

question 122

Multiple Choice

In the long run, competitive firms want to exit industries in which:

• A) P = MC.
• B) P > MC.
• C) P > AC.
• D) P < AC.

Explain the role of competition and other species interactions in shaping community structure.

Understand the process of invasion by non-native species and its consequences on community structure and species diversity.

Grasp the principles of measuring species diversity using indices like the Shannon index.

Explain the processes of facilitation and inhibition during succession and their effect on community structure.

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Definitions:

Average Variable Cost

The total variable cost divided by the quantity of output produced; it represents the variable cost per unit of output.

Marginal Cost

The incremental cost associated with the production of an additional unit of a product or service.

Total Costs

The complete expenses incurred in the process of producing or providing goods and services, including both fixed and variable costs.

Break Even

The point at which total costs and total revenues are equal, resulting in no net loss or gain.