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:

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together.

Ex Post Facto

A research design that examines the effects of an independent variable on a dependent variable after the event has occurred.

Random Assignment

A method in experimental design where study participants are allocated to different groups on a random basis to reduce bias.

Experimental

Relating to a controlled study involving variables manipulated to determine cause-and-effect relationships.