A Purely Competitive Firm

question 67

Multiple Choice

A purely competitive firm

• A)must earn a normal profit in the short run.
• B)cannot earn economic profit in the long run.
• C)may realize either economic profit or losses in the long run.
• D)cannot earn economic profit in the short run.

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Definitions:

Social Ties

The connections and relationships between individuals that form the fabric of society, providing support, community, and social interaction.

Different Activities

A range of tasks or actions that vary in nature, purpose, or context.

Structures of Authority

The organized framework or system by which power and control are exercised in a society, organization, or group.

Obedient

Characterized by or displaying compliance with authority or rules, often following commands or instructions without question.