In the short run,Group of answer choicesall firms that earn a loss will shut down.if current firms are earning a profit, new firms will enter the industry.firms act to minimize losses or maximize profits.All of these are correct.

When monopolistically competitive firms realize losses in the short run, some firms will the industry, market shares and prices and eliminating losses for the remaining firms.

Which of the following statements is NOT correct about perfectly competitive firms: Group of answer choices They will shut down in the short run if they are making economic losses. They cannot sustain positive economic profits in the long run. They will exit the market, in the long run, if they are making economic losses. They will remain in operation in the short run if they are making positive economic profits. They have no control over the market price.

Consider a firm that has no fixed costs and that is currently losing money. a. Are there any situations in which it would want to stay open for business in the short run? multiple choice 1No, the firm will want to shut down.Yes, the firm might want to operate in the long run.Yes, the firm will want to stay in business if revenue is greater than variable costs.There is insufficient information to make this determination. b. A firm with no fixed costs multiple choice 2has a normal profit.has an accounting profit.should shut down.is really in the long run.

If firms in a monopolistically competitive industry are making losses:Group of answer choicesthey will likely be subject to regulationthey ought to form a cartelnew firms will enter the marketsome firms will exit the market

Use the following graph for a perfectly competitive firm to answer the next question.  The firm isMultiple Choiceearning a normal (zero economic) profit.earning an economic profit.generating a loss, but should continue to produce in the short run.generating a loss and should shut down in the short run.