All of the Following Statements Apply to a Purely Competitive

question 40

Multiple Choice

All of the following statements apply to a purely competitive market in the long run, except

• A)in the long run, all inputs are variable in quantity.
• B)firms can expand their plant capacities in the long run.
• C)total fixed costs remain constant even when output expands in the long run.
• D)firms may enter or leave the industry in the long run.

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Definitions:

State Enterprises

Businesses owned wholly or in part by the government and operated for the production and distribution of goods or services.

Entrepreneurs

Individuals who initiate, manage, and assume the risks of starting and operating a business to bring new ideas to market.

Growth

An increase in the economic output and prosperity of a region, often measured by GDP or per capita income over time.

Government Officials

Individuals appointed or elected to positions of authority in government institutions, responsible for making and enforcing rules and laws.