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11 May, 05:51

Firms in every market structure: make long-run economic profits. are in competition with many other firms. leave the market as soon as they experience loss of profits. will attempt to maximize profits. face a horizontal demand curve.

a. true

b. false

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Answers (1)
  1. 11 May, 07:05
    0
    b. False

    Explanation:

    Firms are not in competition with many other firms in every market structure. Some market structures such as monopolies or oligopolies feature either one single firm, or only a few firms, that frequently collude instead of competing.

    Not all firms leave the market as soon as they lose profits. Some do, but others stay. A monopoly can survive decades without increasing its profits.

    Not all firms will try to maximize profits, some will try to maximize market share instead, especially in perfectly-competitive market structures.

    Not all firms face a horizontal demand curve. In some market structures, demand can be very dynamic, either sloping upwards (increasing) or downwards (decreasing).
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