Which of the Following Statements About a Perfectly Competitive Industry

question 113

Multiple Choice

Which of the following statements about a perfectly competitive industry in long- run equilibrium is true?

• A) Individual firms will have no incentive for technological improvement.
• B) Each firm is producing at the minimum point on its LRAC curve.
• C) Losses are tolerable because of high fixed costs.
• D) In order to stay in the industry each firm is making an economic profit.
• E) Firms must exhibit economies of scale.

---

Definitions:

Goal-Directed Activities

Actions deliberately undertaken to achieve specific outcomes or objectives.

Organizational Citizenship Behaviors

Actions by employees that are beyond their formal job requirements but significantly contribute to the positive functioning of the organization.

Conscientiousness

One of the five major personality traits, indicating a person's tendency to be organized, responsible, and hardworking.

External Locus of Control

A psychological concept where individuals believe that external forces or circumstances primarily govern their life outcomes and successes.