In the long-run, if firms in a perfectly competitive market are incurring persistent economic losses, some firms will
A) exit and the price will fall.
B) exit and the price will rise.
C) enter and the price might either rise or fall.
D) exit and the price might either rise or fall.
B
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Currently, the United States is both a net borrower and a debtor nation
Indicate whether the statement is true or false
A monopolist
a. has a supply curve that is upward-sloping, just like a competitive firm. b. does not have a supply curve because the monopolist sets its price at the same time it chooses the quantity to supply. c. has a horizontal supply curve, just like a competitive firm. d. does not have a supply curve because marginal revenue exceeds the price it charges for its products.
Suppose a consumer is currently spending all of her available income on two goods: music CDs and DVDs. If the price of a CD is $9, the price of a DVD is $18, and she is currently consuming 10 CDs and 5 DVDs, what is the consumer's income?
a. $90 b. $180 c. $270 d. $360
The ZZZ Corporation issued $25 million in new common stock in 2013. It used $18 million of the proceeds to replace obsolete equipment in its factory and $7 million to repay bank loans. As a result, investment:
A. of $7 million has occurred. B. of $25 million has occurred. C. of $18 million has occurred. D. has not occurred.