In the Long Run When a Perfectly Competitive Firm Experiences

question 57

Multiple Choice

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

• A) firms exit the industry, the market supply curve shifts rightward, and the market price falls.
• B) firms enter the industry, the market supply curve shifts rightward, and the market price falls.
• C) firms exit the industry, the market supply curve shifts leftward, and the market price rises.
• D) firms enter the industry, the market supply curve shifts rightward, and the market price rises.

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Definitions:

Crystallized Intelligence

a form of intelligence that involves the ability to use learned knowledge and experience.

Fluid Intelligence

The capability to think logically and solve problems in novel situations, independent of acquired knowledge.

Fluid Intelligence

The ability to reason and tackle new problems using logic, without relying on previously learned information.

Crystallized Intelligence

Refers to the accumulation of knowledge, skills, and experience that one gains over time, often assessed through vocabulary and factual information tests.