If a Firm in a Price-Taker Market Is Earning Zero

question 189

Multiple Choice

If a firm in a price-taker market is earning zero economic profit, it

• A) will shut down in the long run but not the short run.
• B) will also be earning zero accounting profit.
• C) is doing as well as typical firms in other markets.
• D) will shut down in the short run.

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Definitions:

Fear Hierarchy

A ranked list of fears from least to most intense, used in therapy to gradually expose individuals to their phobias or fears.

Desensitization Training

A behavioral therapy technique used to reduce fear or anxiety responses by gradually exposing the patient to the feared object or context without any danger.

Snake-handling Convention

A religious ceremony predominantly found in certain Christian sects, where participants demonstrate their faith by handling or being in close proximity to venomous snakes.

In Vivo

A term used in biology and psychology to refer to processes or experiments conducted within a living organism.