If the demand decreases in a perfectly competitive market, firms will likely:
A. exit the market in hopes of capturing profits elsewhere.
B. experience negative profits in the short run.
C. experience zero profits in the long run.
D. All of these are true.
Answer: D
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An increase in the number of consumers, all else held constant, will shift the
a. supply curve leftward. b. demand curve leftward. c. supply curve to the right. d. demand curve to the right.
How will global warming and climate change adversely impact the "poor," particularly in developing nations?
What will be an ideal response?
Suppose the only leakages are savings and taxes. The tax rate is 0.2 and the multiplier is 1.92. These values imply that the marginal propensity to consume is
A) 0.32. B) 0.60. C) 0.68. D) 0.8.
___________ is the speed and ease of retrieving cash or turning another type of investment into cash
a. Morbidity b. Liquidity c. Asset building d. Lifetime earning credit