​In the Long Run, If We Observe Firms in a Competitive

question 230

True/False

​In the long run, if we observe firms in a competitive market earning economic profits, we know that this market is in long-run equilibrium.

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Definitions:

Presidential Election

A formal decision-making process by which a country's citizens select the President, the head of the executive branch of government.

Overconfidence

The tendency to overestimate the accuracy of one’s knowledge and judgments.

Hindsight Bias

The habit of assuming, once an outcome is known, that it was predictable beforehand.

Emotional Instability

A characteristic of individuals who experience rapid, intense emotional changes often in response to events that would not typically provoke such strong reactions.