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:

Tendered Delivery

The act of presenting goods or documents to a party as stipulated in a contract, thereby fulfilling a delivery obligation.

Demand Payment

A request for the payment of a debt or obligation, often made formally and in writing.

Substantially Performed

A term used in contract law indicating that a party has completed the major obligations of a contract, even if minor details remain unfulfilled.

Benefits Promised

Guarantees or assurances given by an employer to employees, often relating to retirement, health care, or other support.