In the Long Run, Firms in a Perfectly Competitive Market

question 15

Multiple Choice

In the long run, firms in a perfectly competitive market choose to produce a quantity:

• A)that earns zero economic profits.
• B)that does not cover minimum average variable costs.
• C)where marginal costs are less than average variable costs.
• D)where average total cost and average variable cost are at their minimum values.

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Definitions:

Stabilizing Selection

A type of natural selection that favors intermediate variants by acting against extreme phenotypes, leading to a decrease in a population's genetic variance.

Clutch Size

The number of eggs laid or offspring produced by an animal, particularly birds, at one time or during one breeding session.

Directional Selection

is a type of natural selection that favors one extreme phenotype over others, causing a shift in allele frequency over time.

Genetic Drift

A mechanism of evolution that results in random changes in the frequency of alleles within a population over time.