In the Long Run, Assuming That the Owner of a Firm

question 466

Multiple Choice

In the long run, assuming that the owner of a firm in a competitive industry has positive opportunity costs, she

• A)should exit the industry unless her economic profits are positive.
• B)will earn zero accounting profits but positive economic profits.
• C)will earn zero economic profits but positive accounting profits.
• D)should ignore opportunity costs because they are a type of sunk cost that disappears in the long run.

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Definitions:

Emotional Pain

Distress caused by intense feelings of sadness, loss, or suffering, which can affect mental health and well-being.

Hurtful Message

A communication that causes emotional harm or distress.

Relational Rewards

The benefits one gains from being in a relationship, such as emotional support, companionship, and a sense of belonging.

Jealousy

Reaction to the threat of losing a valued relationship.