Comparing the Short-Run and Long-Run Profit-Maximizing Positions of a Perfectly

question 3

Multiple Choice

Comparing the short-run and long-run profit-maximizing positions of a perfectly competitive firm,which statement is true?

• A)Price will equal marginal cost in the short run,but not necessarily in the long run.
• B)Economic profit may exist in the short run and in the long run.
• C)The firm will produce at minimum average cost in both the short and long run.
• D)Price should equal average cost in the long run,but not necessarily in the short run.
• E)The firm may have unexploited economies of scale in both the short run and the long run.

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Definitions:

Proletariat

The class of wage-earners in a capitalist society, who, lacking substantial control over the means of production, sell their labor to live.

Bourgeoisie

The social class that owns the means of production during modern industrial capitalism, typically contrasted with the working class or proletarians.

Class Consciousness

The awareness of one's social class and the sense of shared interests with others in the same class, often in contrast to opposing classes.

Functional Imperatives

Fundamental needs that must be met in any social system for it to survive and operate efficiently, such as adaptation, goal attainment, integration, and latency.