In the Long Run,all of the Firms in a Perfectly

question 283

Multiple Choice

In the long run,all of the firms in a perfectly competitive industry will:

• A)produce at an output level at which average total cost equals marginal cost.
• B)earn an economic profit greater than zero.
• C)exit the industry if price is greater than average total cost.
• D)produce an output level at which price is greater than average total cost.

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Definitions:

Assimilation

The cognitive process of integrating new ideas, information, or experiences into existing knowledge frameworks.

Old Schema

A cognitive framework or concept that helps organize and interpret information from one's past.

Piaget

Jean Piaget, a Swiss psychologist known for his pioneering work in child development, especially regarding cognitive development stages.

Sequential Design

A research method that combines cross-sectional and longitudinal designs to observe different cohorts over time.