If Zero Economic Profit Is Being Earned in a Competitive

question 26

Multiple Choice

If zero economic profit is being earned in a competitive industry,

• A)firms leave the industry.
• B)firms permanently shut down.
• C)firms enter the industry.
• D)no firms enter or leave the industry.
• E)firms temporarily shut down.

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Definitions:

Exclusively

Without involving anything or anyone else; solely.

Bloodworms

Aquatic larvae of certain midge species, characterized by their red color due to hemoglobin in the blood, often used as fishing bait and in aquarium feeding.

Coral Reefs

Marine ecosystems characterized by reef-building corals; known for their biodiversity, they are often referred to as the "rainforests of the sea."

Tropical Waters

Warm ocean water found near the equator, characterized by high temperatures and supporting diverse marine life.