If a Typical Firm in a Perfectly Competitive Industry Is

question 135

Multiple Choice

If a typical firm in a perfectly competitive industry is incurring losses, then

• A)all firms will continue to lose money.
• B)some firms will exit in the long run, causing market supply to decrease and market price to rise, increasing profits for the remaining firms.
• C)some firms will exit in the long run, causing market supply to decrease and market price to fall, increasing losses for the remaining firms.
• D)some firms will enter in the long run, causing market supply to increase and market price to rise, increasing profit for all firms.

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Definitions:

Environment

The surrounding conditions or context in which a person, animal, or plant lives or operates, encompassing both natural and built elements.

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A theory focusing on the two-way (dyadic) relationship between leaders and followers, emphasizing the mutual benefits derived from a high-quality relationship.

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The process of identifying, learning, and refining skills necessary for a particular job or activity.

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