In the Long Run, for a Perfectly Competitive Market, If

question 63

Multiple Choice

In the long run, for a perfectly competitive market, if economic profit is

• A) less than zero then some firms will exit the market and the market supply curve will shift leftward.
• B) equal to zero then there is no entry or exit of firms into or out of the market.
• C) greater than zero then some firms will enter the market and the market supply curve will shift rightward.
• D) All of the above answers are correct.

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Definitions:

Average Educational Level

A metric that represents the average amount of formal schooling completed by a population or specific group of people.

Productivity of Labor

A measurement of the output produced by employees or labor within a specific period of time.

Labor-Intensive

A type of production process or industry that requires a large amount of labor to produce goods or services, in comparison to capital.

Economic Costs

The total expenses incurred in production, including both explicit costs like wages and implicit costs such as opportunity costs.