In the Long Run, a Firm Earns Zero Economic Profit

question 106

Multiple Choice

In the long run, a firm earns zero economic profit, given the condition that

• A)P = MR.
• B)P = AVC.
• C)P = ATC.
• D)(P - MC)= 0.

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Definitions:

Brainstorming

A group creativity technique in which efforts are made to find a conclusion for a specific problem by gathering a list of ideas spontaneously contributed by its members.

Guidelines

A set of criteria or instructions designed to direct behavior, actions, or decision-making.

Idea Killer

Anything that stifles creativity or prevents good ideas from being expressed or considered.

Creative Problem Solving

A method of solving problems or identifying opportunities when conventional thinking has failed.