When Economic Profits Are Negative in a Perfectly Competitive Industry

question 23

Multiple Choice

When economic profits are negative in a perfectly competitive industry,

• A) we would expect the market supply curve to shift to the left as a result.
• B) we would expect the market supply curve to shift to the right as a result.
• C) we would not expect any change in the market supply curve to result.
• D) we would expect that the market demand curve to shift left as a result

---

Definitions:

Compliance

The action or process of complying with a command, law, or request.

Parenting Style

The manner in which parents raise and guide their children, characterized by various approaches such as authoritative, permissive, and authoritarian.

Working-Class

A social group consisting of people employed in lower-tier jobs, often involving manual labor and receiving lower pay.

Mass Schooling

The systematized education of large groups of individuals within a society, typically provided by the government or state at no immediate cost to the individual.