Which of the Following Conditions Is True of a Perfectly

question 42

Multiple Choice

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

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

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Definitions:

Cultural Background

The cultural settings and conditions a person is raised in, including traditions, language, beliefs, and values.

Academic Background

The educational history and qualifications a person holds, including degrees, certifications, and specialized training.

Perceptual Constancy

Perceptual Constancy is the perceptual stability of the size, shape, brightness, and color of objects, despite physical differences in the retinal image.

Object Permanence

The understanding that objects continue to exist even when they cannot be observed (seen, heard, touched, smelled or sensed in any way).