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:

Differential Association Theory

Holds that people learn to value deviant or nondeviant lifestyles depending on whether their social environment leads them to associate more with deviants or nondeviants.

Deviant Lifestyle

A way of living that deviates from the societal norms and is often viewed negatively by the mainstream society.

Cultural-Transmission Theory

A concept in sociology that suggests culture and societal norms are learned and passed down from one generation to the next through socialization.

Appeal to Higher Loyalties

Appeal to higher loyalties is a term used in sociology to describe a situation where an individual justifies breaking societal norms or laws by claiming allegiance to a more significant cause or authority.