Which of the Following Is Not a Condition of Long-Run

question 130

Multiple Choice

Which of the following is not a condition of long-run competitive equilibrium?

• A)There is no incentive for firms to enter the industry.
• B)There is no incentive for firms to exit the industry.
• C)There is no incentive for firms to produce more or less output.
• D)There is no incentive for firms to change plant size.
• E)None of the above; that is, all are conditions of long-run competitive equilibrium.

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Definitions:

Sociocultural

Relating to the social and cultural aspects or factors that influence a society and its individuals.

Sherman Antitrust Act

A law passed in 1890 to eliminate monopolies and guarantee competition.

Monopolies

Market structures characterized by a single seller dominating the entire market for a particular product or service, restricting competition.

Consumer Purchases

Transactions made by individuals or households for items that fulfill their personal needs or desires, as opposed to business or commercial buying.