Solved

Firms in a Perfectly Competitive Industry Are Earning Economic Losses

Question 341

Multiple Choice

Firms in a perfectly competitive industry are earning economic losses. This is


A) a signal to entrepreneurs that some of the firms in the industry should exit and the resources of these firms should move into production of other goods.
B) a signal to entrepreneurs that additional resources should be brought into this industry in order to make it profitable.
C) a signal that the entrepreneurs are doing a poor job and should become workers for someone else.
D) a signal to government officials that a subsidy is needed for the firms in the industry.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents