Consider a Perfectly Competitive Firm When Its Industry Is in Long-Run

question 9

Multiple Choice

Consider a perfectly competitive firm when its industry is in long-run equilibrium.Which of the following statements is correct?

• A)The firm has successfully differentiated its product.
• B)The firm has successfully established barriers to entry.
• C)The firm has a strong profit incentive to expand capacity.
• D)The firm has no ability to affect its product's price.
• E)The firm is earning positive economic profits.

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Definitions:

Deductive Thinking

A logical process where a conclusion is based on the concordance of multiple premises that are generally assumed to be true.

Identify

To recognize or establish the identity or nature of someone or something.

Olive

A small, oval-shaped fruit that is typically green, black, or purple and is commonly used for oil or as a food item.

Apple

denotes a widely consumed fruit from the apple tree (Malus domestica), known for its sweet taste and nutritious benefits.