Which of the Following Conditions Is True of a Perfectly

question 1

Multiple Choice

Which of the following conditions is true of a perfectly competitive industry when it is in long-run equilibrium?

• A)Firms are entering the industry.
• B)Firms are exiting the industry.
• C)Price equals minimum short-run average total cost for all firms.
• D)Accounting profits for all firms are zero.
• E)Firms are experiencing increasing returns to scale.

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Definitions:

Debt

Money owed by one party to another under conditions that require repayment, often including interest.

Tax Liability

The total amount of tax owed to tax authorities after all credits and deductions have been applied to gross income.

Taxable Income

The portion of income used to calculate how much the income tax is owed to the government, after exemptions and deductions are factored in.

Publicly-traded Domestic Corporation

A company registered in the U.S. that sells its stocks to the public on at least one stock exchange.