Examlex

Solved

In a Long-Run Equilibrium in a Perfectly Competitive Market, the Average

question 73

True/False

In a long-run equilibrium in a perfectly competitive market, the average firm earns positive economic profits.


Definitions:

Creates Shortage

A market condition where the quantity demanded exceeds the quantity supplied at a given price, often due to price controls like price ceilings.

Price Floor

A government-imposed minimum price level for a particular commodity or service, aimed at protecting producers.

Legal Minimum

A legally established lower threshold for payments or conditions, such as minimum wage.

Good Sold

Refers to a product that has been purchased by a buyer from a seller in a transaction.

Related Questions