If Long-Run Equilibrium Is Present in a Competitive Market, the Typical

question 147

Multiple Choice

If long-run equilibrium is present in a competitive market, the typical firm in the market will be

• A) making economic losses.
• B) making zero economic profit.
• C) making economic profit.
• D) making a rate of return that is higher than the rate earned in other industries.
• E) both c and d are correct.

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Definitions:

Dynamics

The forces or properties that stimulate growth, development, or change within a system or process.

Nativist-Acquisition Hypothesis

A theory suggesting that the ability to learn language is innate, with linguistic development triggered by exposure to language.

Universal-Linguistic Theory

A theory suggesting that there are innate, universal grammar rules shared across all human languages, proposed by linguist Noam Chomsky.