In the Long Run, Perfectly Competitive Firms Make Zero Economic

question 44

Multiple Choice

In the long run, perfectly competitive firms make zero economic profit. This result is due mainly to which of the following assumptions?

• A) few buyers and sellers
• B) unrestricted entry and exit
• C) firms must act as price takers
• D) demand for the firm's output is perfectly elastic

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Definitions:

Taproot

A type of root system characterized by a single, large primary root that grows vertically downward, giving rise to smaller lateral roots.

Genus Gnetum

A genus of tropical evergreen trees and shrubs that belong to the gymnosperm group Gnetophyta.

Female Gametophyte

The haploid phase in plants that produces the female gametes or eggs.

Embryo Sac

The female gametophyte generation in flowering plants.