In the Long Run When a Perfectly Competitive Firm Experiences

question 209

Multiple Choice

In the long run when a perfectly competitive firm experiences negative economic profits,

• A) the high barriers to entry prevent further competition.
• B) existing firms exit the industry.
• C) additional firms enter the industry.
• D) firms have no incentive to exit or enter the industry.

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Definitions:

Generalization

The process of applying the response to a specific stimulus to similar stimuli, often used in learning and psychology.

Spontaneous Recovery

A response that had once disappeared reemerges after a time without being exposed to the original conditioned stimulus.

Nausea-Producing Radiation

Nausea-producing radiation refers to levels of radiation exposure that are high enough to cause nausea and vomiting, among other symptoms, due to its effects on the body's cells and systems.

Novel Tastes

Experiences of new and unfamiliar flavors or culinary dishes.