Zero Economic Profits for a Perfectly Competitive Firm in the Long

question 76

Multiple Choice

Zero economic profits for a perfectly competitive firm in the long run means

• A)the firm must exit the industry.
• B)the firm is in equilibrium.
• C)the firm will shut down until the market improves.
• D)average revenue is insufficient to cover long-run average cost.

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Definitions:

Social Security Pensions

Government-provided benefits paid to eligible retirees or disabled individuals as part of a national social insurance program.

Average Tax Rate

The percentage of total income that is paid in taxes, calculated by dividing the total tax paid by the taxpayer's total income.

Marginal Tax Rate

The percentage of tax applied to your income for each tax bracket in which you qualify.

Progressive Tax

A taxation system where the tax rate increases as the taxable amount rises, thereby imposing a higher percentage rate on those with higher incomes.