In the ________, the perfectly competitive firm will react to profits by __________________________ .
A. short run; increasing quality of products
B. long run; tailoring their quality controls
C. short run; reducing its labor inputs
D. long run; increasing its production
Answer:D
In the ________, the perfectly competitive firm will react to profits by __________________________ .
A. short run; increasing quality of products B. long run; tailoring their quality controls C. short run; reducing its labor inputs D. long run; increasing its production
Explanation: 19. Firms operating in a market situation that creates ___________________, sell their product in a market with other firms who produce identical or extremely similar products.