In a perfectly competitive market, when the price is greater than the minimum average total cost for most firms, some firms will _______ the market until the price ______ to equal the minimum average total cost. exit; falls enter; falls exit; rises enter;rises

In a perfectly competitive market, when the price is greater than the minimum average total cost for most firms, some firms will _ the market until the price to equal the minimum average total cost. exit; falls enter; falls exit; rises enter;rises

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter9: Perfect Competition

Section: Chapter Questions

Problem 7WNG

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Question

exit; falls
enter; falls
exit; rises
enter;rises

Definition Definition Structure of the market that exists when many buyers and sellers exchange similar commodities and prices are fixed by market forces, demand, and supply. When there is perfect competition, a single business cannot impact the price or market value of the homogenous product.

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