Which of the Following Statements Concerning Equilibrium in the Long

question 31

Multiple Choice

Which of the following statements concerning equilibrium in the long run is not true?

• A)Most firms earn economic profits in the long run.
• B)The firm can vary its plant size in the long run.
• C)Economic profits are eliminated as new firms enter the industry in the long run.
• D)For firms in long-run equilibrium, P = MC = AC.

---

Definitions:

Drives

Internal motivational states that push organisms to fulfill essential needs such as hunger, thirst, or sleep.

Cognitive Maps

Mental representations of physical environments, helping individuals navigate and understand spatial relationships.

Theories

Systematic ideas or sets of principles intended to explain phenomena based on general concepts.

Reductionist

An approach in science and philosophy that breaks complex phenomena down into their most basic parts, often with the aim of simplifying understanding.