A Firm Will Only Earn Normal Profit in the Long

question 189

Multiple Choice

A firm will only earn normal profit in the long run

• A)if firms can freely enter or leave the market
• B)if firms do not try to maximize profit
• C)only if the industry is perfectly competitive
• D)whenever products are not differentiated
• E)if barriers to entry exist

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Definitions:

Discrimination

Unfair or prejudicial treatment of different categories of people or things, especially on the grounds of race, age, or sex.

Profitable

A state or condition of yielding a financial profit or gain; it is often considered after all expenses have been deducted.

Opportunity Cost

The cost of foregone alternatives; the value of the best alternative that is not chosen.

Leisure

Free time when individuals are not working, which can be used for rest, recreation, or personal activities.