Which of the Following Statements Is Correct

question 153

Multiple Choice

Which of the following statements is correct?

• A)Purely competitive firms, monopolistically competitive firms, and pure monopolies all earn zero economic profits in the long run.
• B)Purely competitive firms, monopolistically competitive firms, and pure monopolies all earn positive economic profits in the long run.
• C)In the long run, purely competitive firms and monopolistically competitive firms earn zero economic profits, while pure monopolies may or may not earn economic profits.
• D)Monopolistically competitive firms earn zero economic profits in both the short run and the long run.

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Definitions:

Evolutionary Theory

A scientific theory proposing that species change over time through a process of natural selection, genetic variation, and reproduction.

Provide Well

The act of adequately supplying what is needed, often used in the context of fulfilling financial or emotional needs in familial or relationship settings.

Socioeconomic Status

A measure of an individual's or family's economic and social position relative to others, based on income, education, and occupation.

Raising a Family

The act and responsibility of nurturing, educating, and providing for children within a household.