Suppose firms in a perfectly competitive market are incurring an economic loss. Over time

A) other firms enter the market, so the price rises and the economic loss decreases.
B) some firms leave the market, so the price rises and the economic loss decreases.
C) other firms enter the market, so the price falls and the economic loss decreases.
D) some firms leave the market, so the price falls and the economic loss decreases.


B

Economics

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Which of the following conditions is characteristic of a monopolistically competitive firm in long-run equilibrium?

a. P > MR and P = MC b. ATC = demand and MR = MC c. P < MC and demand = ATC d. P > ATC and demand > MR

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When a worker learns how to use a new business-related software program, this is an example of investing in:

A. the stock market. B. research and development C. human capital. D. physical capital.

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Total cost is

A) \TFC - TVC. B) TFC/TVC. C) TFC + TVC. D) AFC + AVC.

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Those with more inelastic demands will bear a larger burden of a tax because they:

A. will switch to other products with a tax. B. have more buying power. C. have more income. D. have fewer substitutes for that good.

Economics