In the Long Run When a Perfectly Competitive Firm Experiences

question 225

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) that firm exit the industry.
• C) new firms enter the industry.
• D) firms have no incentive to exit or enter the industry.

---

Definitions:

Production Possibility Frontier

An image projecting the ultimate production capacities for a duo of items, rooted in a given assortment of inputs including resources and extra aspects.

Technology Level

The current state of technological advancement and availability in a society or sector.

Resources Available

The total assets, both tangible and intangible, that are at disposal for use in the production of goods and services.

Production Possibility Frontier

A graph that shows all the maximum production possibilities of two or more products based on certain inputs.