In Long-Run Equilibrium for a Competitive Firm Economic Profits

question 130

Multiple Choice

In long-run equilibrium for a competitive firm economic profits

• A) will be positive.
• B) will be negative
• C) will be zero.
• D) may be positive, negative, or zero.

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Definitions:

Tariff Rates

Taxes imposed by a government on imported goods, which can affect international trade by increasing the cost of imported products.

Net Welfare Loss

The decrease in social welfare, often measured as the loss in efficiency or total wealth due to distortions, such as taxes or subsidies.

World Trade Organization

An international organization that regulates international trade and ensures that trade flows as smoothly, predictably, and freely as possible.

Institutionalized

Institutionalized refers to the process by which certain practices or norms become established and accepted in society or within an organization as formal structures.