Which of the Following Is True for Firms That Produce

question 112

Multiple Choice

Which of the following is true for firms that produce in markets where there are no barriers to entry?

• A) The firms will always make positive economic profits in the long run.
• B) The firms will always make positive economic profits in the short run.
• C) The firms will always make zero economic profits in the short run.
• D) The firms will always make zero economic profits in the long run.

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Definitions:

Consumer Behaviour

The examination of how individuals, groups, or organizations choose, obtain, employ, and discard products, services, experiences, or ideas to fulfill their needs, and how these activities affect both the consumer and the wider community.

Compulsive Consumption

is the excessive shopping behavior characterized by an uncontrollable urge to buy, often leading to personal, social, or financial problems.

Impulse Buying

The act of purchasing items on the spur of the moment, driven by emotional rather than rational decision-making processes.

Counterfeiting

The illegal replication of products, currency, or documents with the intent to deceive or defraud by passing off the imitation as genuine.