A Perfectly Competitive Industry in Long-Run Equilibrium Is Described as Efficient

question 146

Multiple Choice

A perfectly competitive industry in long-run equilibrium is described as efficient because firms

• A)produce at the low point on their average cost curve.
• B)produce where marginal cost yields a profit.
• C)earn no more than the cost of capital.
• D)are not profitable.

Analyze the unique characteristics of specific presidential elections, including the election of 1912.

Identify and understand the four main functions of political parties.

Recognize and explain the organizational structure and management roles within political parties.

Explain the historical and ideological origins of major political parties.

---

Definitions:

After-Tax Discount Rate

The interest rate used in discounting cash flows that takes into account the tax implications of the investment.

Incremental Sales

The additional revenue generated from a specific business decision or action.

Cash Operating Expenses

Expenses incurred during the normal operation of a business that affect its cash position, such as rent, utilities, and payroll, excluding non-cash expenses like depreciation.

Working Capital

The difference between a company's current assets and its current liabilities, indicating the liquidity and operational efficiency of the business.