A Perfectly Competitive Firm in the Long Run

question 96

Multiple Choice

A perfectly competitive firm in the long run:

• A) can earn positive or negative economic profits.
• B) can earn negative accounting profits as long as economic profits are positive.
• C) makes zero economic profits.
• D) makes zero accounting profits.

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Definitions:

Ultimate Responsibility

The highest level of accountability for the outcomes of decisions and actions within an organization or project.

Departmentalization Scheme

The method an organization uses to segment its operations into specialized units or departments based on function, product, geography, or process.

Process Departmentalization

involves organizing a company's divisions or departments based on the production processes they perform, aiming to enhance efficiency and expertise in those processes.

Business Functions

The variety of activities carried out within a business organization to achieve its objectives, such as marketing, finance, operations, and human resources.