Tim Tupper's Term Paper-Typing Business Is a Perfectly Competitive Firm

question 80

Multiple Choice

Tim Tupper's term paper-typing business is a perfectly competitive firm in long-run equilibrium.Which of the following does not describes the firm's situation?

• A)It will be minimizing average total cost.
• B)It will be charging a price equal to marginal cost.
• C)It will be charging a price equal to average total cost.
• D)It will be earning a normal profit.
• E)Entrepreneurs outside the industry will be eager to enter.

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Definitions:

Straight Piecework Plan

A pay system where employees are compensated based on the number of units they produce or tasks they complete, directly linking pay to output.

Performance-Vested

Incentive plans where rewards, often in the form of stock options or bonuses, are given to employees based on achieving predefined performance targets.

Time-Based Restricted Stock

A type of stock option granted to employees as part of their compensation, with restrictions that lapse over a certain period of employment.

Vesting Occurs

The process by which an employee gains nonforfeitable rights over employer-provided assets or benefits, such as retirement funds, over time.