In the Long Run Firms Will Expand as Long as There

question 276

Multiple Choice

In the long run firms will expand as long as there are more ________, and new firms will enter the industry as long as they earn ________.

• A) economies of scale; zero profits
• B) economies of scale; positive economic profits
• C) diseconomies of scale; zero profits
• D) diseconomies of scale; positive economic profits

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Definitions:

Fluid Intake

Fluid Intake describes the consumption of liquids to maintain optimal hydration and bodily functions.

Warmth-Sensitive Receptors

Sensory receptors in the skin and other organs that detect changes in temperature, particularly increases in warmth.

Hypothalamus

A region of the brain that plays a crucial role in hormone production, regulating bodily functions such as temperature, hunger, and sleep cycles.

Peripheral Vasodilation

The widening of blood vessels away from the heart, typically in the limbs, reducing blood pressure and increasing blood flow.