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.

---

Definitions:

Outcomes

The results or consequences of an action, process, or scenario.

Special-Interest Effect

Any political outcome in which a small group (“special interest”) gains substantially at the expense of a much larger number of persons who each individually suffers a small loss.

Government Policy

refers to the actions taken by a government to address issues or achieve goals, which may involve regulations, laws, or spending priorities.

Economic Efficiency

A situation where resources are allocated in a way that maximizes the production of goods and services.