In the Long Run, for a Perfectly Competitive Market, If

question 224

Multiple Choice

In the long run, for a perfectly competitive market, if economic profit is

• A) less than zero, then some firms will exit the market and the market supply curve will shift leftward.
• B) greater than zero, then some firms will enter the market and the market supply curve will shift rightward.
• C) equal to zero, then there is no entry or exit of firms into or out of the market.
• D) All of the above answers are correct.

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Definitions:

African-American Worker

An African-American Worker refers to an employee in the labor market who identifies as African American, highlighting the consideration of racial demographics within labor studies.

Labor Market

The supply and demand for labor, where employers seek to hire employees and employees seek jobs, and wages are determined.

Income-Maintenance Programs

Government programs designed to provide financial assistance to individuals or households to ensure a minimum level of income.

Aggregate Spending

The total amount of spending in an economy, including consumption, investment, government purchases, and net exports.