In the Long Run, Assuming That the Owner of a Firm

question 466

Multiple Choice

In the long run, assuming that the owner of a firm in a competitive industry has positive opportunity costs, she

• A)should exit the industry unless her economic profits are positive.
• B)will earn zero accounting profits but positive economic profits.
• C)will earn zero economic profits but positive accounting profits.
• D)should ignore opportunity costs because they are a type of sunk cost that disappears in the long run.

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Definitions:

Intrinsically Rewarding

An activity or task that is fulfilling and satisfying in itself, without the need for external rewards or recognition.

Organizational Socialization

The process by which a new employee learns the norms, values, behaviors, and social knowledge necessary to become an integrated member of an organization.

Task Demands

The specific requirements or challenges associated with a job or task, including the physical and mental effort required.

Culture

The shared beliefs, behaviors, and norms within an organization that shape its social and work environment.