When a Perfectly Competitive Industry Is in Long-Run Equilibrium,its Firms

question 285

Multiple Choice

When a perfectly competitive industry is in long-run equilibrium,its firms:

• A)earn more than zero economic profits.
• B)combine their variable and fixed resources inefficiently.
• C)are not in short-run equilibrium.
• D)allocate all of their resources efficiently.

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Definitions:

Preferred Stock

A type of stock that offers dividends and/or liquidation preference over common stock.

Par

The face value of a bond or stock, or the standard level for a currency.

Dividend

A portion of a company's earnings distributed to shareholders, usually in the form of cash or stock.

Exchange Rate

The value of one currency for the purpose of conversion to another, indicating how much of one currency can be exchanged for another.