Which of the Following Is True for a Perfectly Competitive

question 85

Multiple Choice

Which of the following is true for a perfectly competitive firm in the long run?

• A) There are barriers to entry and exit in the long run.
• B) In the long run, price is greater than marginal revenue.
• C) Firms make normal profits in the long run.
• D) The long-run supply curve is horizontal.

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Definitions:

Depreciation

A technique for spreading out the expense of a physical asset across its lifespan.

Rent Expired

An expense recognized when the rental period has ended, reflecting the cost of using a property or equipment for that period.

Unearned Fees

Income received by a business for which the services have not yet been performed or delivered.

Adjusted Trial Balance

A listing of all company accounts that will appear in the financial statements after adjusting entries have been made.