In the Long Run, Perfectly Competitive Firms Make Zero Economic

question 44

Multiple Choice

In the long run, perfectly competitive firms make zero economic profit. This result is due mainly to which of the following assumptions?

• A) few buyers and sellers
• B) unrestricted entry and exit
• C) firms must act as price takers
• D) demand for the firm's output is perfectly elastic

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Definitions:

Colonists

Individuals who settle in a new land or territory while maintaining ties with their parent country, often involved in the establishment of new colonies.

British

Referring to anything related to the United Kingdom or its people, including its culture, history, and political influence.

Responsible

Having an obligation to do something, or the ability to make moral or rational decisions on one's own, often leading to being trusted and relied upon.

Charles III

A monarch who has reigned in several historical periods, known for various reforms and policies, including Charles III of Spain, who implemented enlightened absolutism in the 18th century.