multiple choice firms in perfect competitions will leave the industry if they: 1- suffer short-run losses 2- suffer losses, even if they are covering variable costs in the short run 3- suffer long-run losses 4-earn a normal profit 5- earn a zero economic profit

multiple choice firms in perfect competitions will leave the industry if they: 1- suffer short-run losses 2- suffer losses, even if they are covering variable costs in the short run 3- suffer long-run losses 4-earn a normal profit 5- earn a zero economic profit

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

multiple choice

firms in perfect competitions will leave the industry if they:

1- suffer short-run losses

2- suffer losses, even if they are covering variable costs in the short run

3- suffer long-run losses

4-earn a normal profit

5- earn a zero economic profit

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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