Which of the Following Statements About a Perfectly Competitive Industry

question 113

Multiple Choice

Which of the following statements about a perfectly competitive industry in long- run equilibrium is true?

• A) Individual firms will have no incentive for technological improvement.
• B) Each firm is producing at the minimum point on its LRAC curve.
• C) Losses are tolerable because of high fixed costs.
• D) In order to stay in the industry each firm is making an economic profit.
• E) Firms must exhibit economies of scale.

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Definitions:

Glaucoma

A group of eye conditions resulting in optic nerve damage, often associated with increased pressure in the eye, leading to loss of vision if untreated.

Abbreviation

A shortened form of a word or phrase used to save space or time when writing or speaking.

Capsular Glaucoma

A form of glaucoma characterized by high intraocular pressure due to the malfunctioning of the drainage structures within the eye's capsular (outer layer).

Pseudoexfoliation

A condition characterized by the accumulation of fibrillary extracellular material in various organs and tissues of the body, including the eyes, which can lead to secondary glaucoma.