When Profit-Maximizing Firms in Competitive Markets Are Earning Profits

question 166

Multiple Choice

When profit-maximizing firms in competitive markets are earning profits,

• A)market demand must exceed market supply at the market equilibrium price.
• B)market supply must exceed market demand at the market equilibrium price.
• C)new firms will enter the market.
• D)the most inefficient firms will be encouraged to leave the market.

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Definitions:

Larger Animal Species

Animal species characterized by their greater physical size compared to others, which can influence their ecology, behavior, and conservation needs.

Sleep

A naturally recurring state of mind and body characterized by altered consciousness, relatively inhibited sensory activity, reduced muscle activity, and inhibition of nearly all voluntary muscles during rapid eye movement (REM) stages.

Jet Lag

A temporary disorder that causes fatigue, insomnia, and other symptoms as a result of air travel across time zones.

Negotiating

The process of discussing something formally in order to reach an agreement or compromise between different parties.