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:

Prostaglandin Activity

Biological processes involving prostaglandins, which are lipid compounds having diverse hormone-like effects in animals.

Raynaud's Disease

A condition characterized by decreased blood flow to extremities, causing discoloration and often pain in response to cold temperatures or stress.

Diltiazem

A medication used to treat high blood pressure and chest pain, functioning as a calcium channel blocker that relaxes the heart muscles and blood vessels.

Sympathectomy

A surgical procedure that destroys nerves in the sympathetic nervous system to reduce pain or improve blood flow.