If There Are Below-Normal Short Run Profits in an Industry

question 126

Multiple Choice

If there are below-normal short run profits in an industry, there will be:

• A) entry.
• B) exit.
• C) no entry or exit.
• D) below-normal profits in the next period.

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Definitions:

Purchase

The act of buying goods or services, involving the exchange of money for ownership or use rights.

Certificate

A formal document attesting to a fact, such as the completion of an educational course or the ownership of shares in a company.

Writs of Execution

Legal documents issued by a court authorizing the enforcement of a judgment, typically involving the seizure of property to satisfy a debt.

Vendor

A person or company offering something for sale, especially a trader in the streets.