Long-Run Competitive Equilibrium Requires

question 129

Multiple Choice

Long-run competitive equilibrium requires:

• A) average costs to be zero for all firms in the industry.
• B) price to be zero for all firms in the industry.
• C) economic profits to be zero for all firms in the industry.
• D) accounting profits to be zero for all firms in the industry.

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Definitions:

Futures Contract

A contractual arrangement to purchase or sell a specified asset, like a commodity or financial instrument, at an agreed-upon price on a future date.

Bushels

A unit of volume that is used primarily for measuring quantities of grain.

Soybeans

A type of legume native to East Asia, widely grown for its edible bean which has numerous uses, including oil production and as a protein source in animal feeds and various food products.

Contract Price

The price agreed upon in a contract for the purchase or sale of an asset, service, or other commodity.