Which of the Following Is True for a Perfectly Competitive

question 53

Multiple Choice

Which of the following is true for a perfectly competitive agricultural market with economic profits?

• A)Firms will enter and existing firms will increase their production until economic profits are zero.
• B)The profits will last indefinitely since there are barriers to entry.
• C)Firms will exit until normal profits are zero.
• D)No entry or exit will occur based on economic profits.

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Definitions:

Securities Act Of 1933

A U.S. federal law enacted to ensure transparency in financial statements so investors can make informed decisions about investments, and to establish laws against fraud in the securities industry.

Interstate Commerce

Trade, traffic, or transportation involving the crossing of state boundaries within the United States.

Registration

The act of recording or enrolling an individual's or entity's details on an official list or registry for legal, security, or operational purposes.

Best Efforts

A clause requiring a party to make the maximum effort to achieve a task, without guaranteeing success.