In the Long Run, Each Firm in a Competitive Industry

question 79

Multiple Choice

In the long run, each firm in a competitive industry earns

• A)zero accounting profits.
• B)zero economic profits.
• C)positive economic profits.
• D)positive, negative, or zero economic profits.

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Definitions:

Hegemony

The dominance of one group over others, often seen in cultural, economic, or political contexts, where one entity exercises significant influence.

Sherman Act

A foundational U.S. antitrust law established in 1890 aimed at preventing monopolies and promoting competition in the marketplace.

Clayton Act

A U.S. antitrust law passed in 1914, aimed at promoting competition and preventing monopolies by prohibiting certain types of anti-competitive practices.

Dual Distribution

A distribution strategy where a company sells products through multiple channels, often both directly to consumers and through intermediaries.