If All Firms Have the Same Costs of Production, Then

question 55

Multiple Choice

If all firms have the same costs of production, then in long-run equilibrium,

• A)price exceeds average total cost for all firms.
• B)price exceeds marginal cost for all firms.
• C)some firms may earn positive economic profits.
• D)all firms have zero economic profits and just cover their opportunity costs.

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Definitions:

Frontal Lobe

The part of the cerebrum located at the front of the brain, associated with reasoning, planning, parts of speech, movement, emotions, and problem-solving.

Cerebral Cortex

The cerebral cortex is the outer layer of neural tissue of the cerebrum of the brain, playing a key role in memory, attention, perception, cognition, awareness, thought, language, and consciousness.

Hypothalamus

A small region of the brain below the thalamus, crucial for maintaining homeostasis and regulating functions such as hunger, thirst, and temperature.

Hindbrain

The posterior part of the brain, including the cerebellum and brainstem, responsible for controlling various basic functions such as respiration and heart rate.