The Number of Firms Increases in the Long Run When

question 73

True/False

The number of firms increases in the long run when the industry realizes profits.

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Definitions:

Opportunity Costs

Opportunity costs represent the benefits a person, investor, or business misses out on when choosing one alternative over another.

Variable Cost

Costs that vary directly with the level of production or output, such as raw materials and direct labor expenses.

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives.

Product Costs

The costs directly associated with producing goods, including direct materials, direct labor, and manufacturing overhead.