When market conditions in a competitive industry are such that firms cannot cover their total production costs, then a) the firms will suffer long-run economic losses. Ob) the firms will suffer short-run economic losses that will be exactly offset by long-run economic profits. Oc) some firms will exit the market, causing prices to rise until the remaining firms can cover their total production costs. d) all firms will go out of business, since consumers will not pay prices that enable firms to cover production costs. their total

When market conditions in a competitive industry are such that firms cannot cover their total production costs, then a) the firms will suffer long-run economic losses. Ob) the firms will suffer short-run economic losses that will be exactly offset by long-run economic profits. Oc) some firms will exit the market, causing prices to rise until the remaining firms can cover their total production costs. d) all firms will go out of business, since consumers will not pay prices that enable firms to cover production costs. their total

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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