Which of the Following Statements About a Perfectly Competitive Industry

question 154

Multiple Choice

Which of the following statements about a perfectly competitive industry in long-run equilibrium is true?

• A)In order to stay in the industry each firm is making an economic profit.
• B)Losses are tolerable because of high fixed costs.
• C)Individual firms will have no incentive for technological improvement.
• D)Firms must exhibit economies of scale.
• E)Each firm is producing at the minimum point on its LRAC curve.

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Definitions:

Industrial Market Economies

These are economies characterized by significant industrial activity, where goods are produced using advanced technological means.

Sub-Saharan African

Referring to the geographical area of the African continent that lies south of the Sahara Desert, characterized by diverse cultures, languages, and economies with varying levels of development.

Poor Countries

Poor countries are those with low levels of economic productivity, insufficient incomes, and a general standard of living considered below acceptable norms.

Industrial Market Economies

Economies characterized by sectors that primarily focus on manufacturing and industrial activities, as opposed to agricultural or service sectors, generally involving a significant use of technological and capital investment.