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:

Ordinal Variables

Variables that represent categories with a natural order or ranking among them, though the intervals between the rankings may not be equal.

Interval Variables

Variables that have measurable distances between values but no true zero point, allowing for the calculation of meaningful differences.

Relationship

A connection or association between two or more variables in a dataset or study.

Level Of Success

A measure or evaluation of the extent to which specified goals, objectives, or tasks have been achieved.