In Reference to the Long-Run Firm Competitive Equilibrium Diagram, Which

question 342

Multiple Choice

In reference to the long-run firm competitive equilibrium diagram, which of the following statements is INCORRECT?

• A)In the long run, the firm has no incentive to alter its scale of operations.
• B)Because profits must be zero in the long run, the firm's short-run average costs (SA
• C)must equal P at , which occurs at minimum SAC.
• C)In the long run, the firm operates where price, marginal revenue, marginal cost, short-run minimum average cost, and long-run minimum average cost all are equal.
• D)In the long run, this firm must be part of a constant-cost industry, because its marginal revenue curve is perfectly elastic.

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Definitions:

Ethnocentrism

The belief that one’s in-group is superior to all out-groups.

Cultural Relativism

The idea that something can be understood and judged only in relationship to the cultural context in which it appears.

Language

A system of communication used by a particular community or country, comprising spoken, written, or signed forms.

Patterns of Inequality

Systematic disparities between groups in society, often related to wealth, access to resources, or social status.