A Competitive Price-Taker Firm Would Be Willing to Remain in the Industry

question 148

Multiple Choice

A competitive price-taker firm would be willing to remain in the industry in the long run at zero economic profit because

• A) it would find it too difficult to exit from the industry in the long run.
• B) accounting profit would be negative.
• C) it is covering all costs, including the opportunity cost of capital and labor.
• D) its sunk costs would prevent it from leaving the industry.

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Definitions:

Projective Personality

A type of personality test in which the respondent’s interpretation of ambiguous scenes or stimuli is used to analyze their personality characteristics and underlying thought processes.

Personality Assessment Inventory

A psychological test used to evaluate personality traits and psychopathology.

Objective Personality

Tests designed to measure personality traits or characteristics without bias from the test-taker's subjective interpretation.

Projective Personality

Techniques in psychological assessment where ambiguous stimuli are presented to individuals with the aim of eliciting responses that reveal aspects of their personality.