Which of the Following Statements Concerning Equilibrium in the Long

question 31

Multiple Choice

Which of the following statements concerning equilibrium in the long run is not true?

• A)Most firms earn economic profits in the long run.
• B)The firm can vary its plant size in the long run.
• C)Economic profits are eliminated as new firms enter the industry in the long run.
• D)For firms in long-run equilibrium, P = MC = AC.

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Definitions:

Charitable Trust

A trust established for charitable purposes, benefiting the public or a segment of it, and possessing special tax considerations.

Testamentary Trust

A trust that is created according to the instructions left in a deceased person's will and goes into effect upon their death.

Died Intestate

The situation where a person passes away without having made a legal will.

Personal Representative

A personal representative is an individual appointed to administer the estate of a deceased person, managing and distributing the estate's assets according to the will or, if there is no will, in accordance with state laws.