In the Long Run, a Firm Will Exit a Competitive

question 10

Multiple Choice

In the long run, a firm will exit a competitive industry if

• A)total revenue exceeds total cost.
• B)the price exceeds average total cost.
• C)average total cost exceeds the price.
• D)Both a and b are correct.

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Definitions:

Railroad Industry

The sector of the economy involved in the operation of trains and the management of train transportation.

Coal Mining

The process of extracting coal from the ground, which has historically been a major industry in various parts of the world, including the United States and the United Kingdom.

European Rail System

The extensive network of railways connecting various countries across Europe, known for its efficiency and connectivity, offering both freight and passenger services.

Market Revolution

A major transformation in the early 19th century United States economy, driven by innovations in transportation, communication, and manufacturing.