Which of the Following Statements Regarding the Long-Term Equilibrium Is

question 48

Multiple Choice

Which of the following statements regarding the long-term equilibrium is TRUE?

• A) As new firms enter a market, each existing firm increases the quantity it produces.
• B) Firms leave a market if they are making zero economic profit.
• C) Entry and exit stop when firms are making an economic profit.
• D) Entry and exit stop when firms make zero economic profit.

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Definitions:

High Neuroticism

A personality trait that indicates a higher tendency towards emotional instability, anxiety, moodiness, worry, and jealousy.

Low Extraversion

Characterized by being reserved, introspective, and less engaged in social activities.

Agoraphobia

An anxiety disorder characterized by an intense fear of being in places where escape might be difficult or that might lead to panic attacks.

Anxiety Attacks

Intense and often sudden feelings of fear, panic, or discomfort, commonly accompanied by physical symptoms such as heart palpitations and trembling.