Which of the Following Is True in the Long Run

question 117

Multiple Choice

Which of the following is true in the long run for both monopoly and perfectly competitive industries?

• A)There are low barriers to entry.
• B)Firms can earn positive economic profits in the long run.
• C)Firms produce at levels that are economically efficient.
• D)Firms will go out of business if they cannot charge a price that is at least equal to average total cost.

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Definitions:

Creative Thinking

The ability to think in novel and unusual ways and to come up with unique solutions to problems.

Practical Thinking

A form of reasoning that focuses on finding effective solutions for real-world problems.

Memorize Material

The act of committing information to memory for later recall.

Direct Observation

The method of obtaining information through direct witnessing or physical measurement of phenomena, without reliance on inference or assumption.