In the Long Run, Perfectly Competitive Firms Make Zero Economic

question 454

Multiple Choice

In the long run, perfectly competitive firms make zero economic profit. This result is due mainly to the point that a perfectly competitive market has

• A) few buyers and sellers.
• B) no barriers to entry and exit.
• C) price taking by the firms.
• D) firms with perfectly elastic market demand.

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Definitions:

Pleura

A double-layered membrane surrounding each lung, providing lubrication and facilitating breathing movement.

Alveoli

Tiny air sacs in the lungs where the exchange of oxygen and carbon dioxide takes place.

Muscular Contractions

The process by which muscle fibers produce tension or force by converting chemical energy into mechanical energy.

Internal Chest Wall

The inside layer of the chest wall, consisting of ribs, muscles, and connective tissue, which supports and protects thoracic organs.