A Firm Operating in a Perfectly Competitive Market May Earn

question 178

True/False

A firm operating in a perfectly competitive market may earn positive, negative, or zero economic profit in the long run.

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Definitions:

Fluctuations

Variations or changes in level, degree, or value that occur over time.

Responsibility Centres

Sections or departments within an organization, each overseen by a manager who is accountable for its performance and financial outcomes.

Support Department Costs

Expenses associated with departments that do not directly produce goods or services but support those who do, like maintenance or administration.

Manufacturing Costs

Expenses directly tied to the process of producing finished goods, including raw materials, labor, and overhead costs.