In the Long Run, Firms Enter an Industry When

question 96

Multiple Choice

In the long run, firms enter an industry when

• A)firms in the industry realize positive economic profits.
• B)firms in the industry realize economic losses.
• C)other firms exit the industry.
• D)economic profits in the industry are zero.
• E)firms in the industry become price-makers.

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Definitions:

Subsidiaries

Companies that are controlled by another company, known as the parent company, through ownership of the majority of voting stock.

Intra-entity Gains

Profits realized from transactions within the same entity, often eliminated in preparation of the consolidated financial statements.

Separate Tax Returns

Tax filings made by individuals or married couples separately, rather than a joint tax return, often to optimize tax liability.