Assume a Purely Competitive Firm Is Maximizing Profit at Some

question 32

Multiple Choice

Assume a purely competitive firm is maximizing profit at some output at which long-run average total cost is at a minimum. Then

• A)the firm is earning an economic profit.
• B)there is no tendency for the firm's industry to expand or contract.
• C)allocative but not productive efficiency is being achieved.
• D)other firms will enter this industry.

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Definitions:

Primary Election

A preliminary election to appoint delegates to a party conference or to select the candidates for a principal, especially presidential, election.

Political Party

An organized group of people with at least roughly similar political aims and opinions, seeking to influence public policy by getting its candidates elected to public office.

Candidates

Individuals seeking to be elected or appointed to a public office or position.

Federal Election Campaign Act

A United States federal law designed to regulate campaign financing and spending for federal elections.