Which of the Following Is a Key Characteristic of the Long-Run

question 52

Multiple Choice

Which of the following is a key characteristic of the long-run competitive equilibrium that distinguishes it from the short-run competitive equilibrium?

• A) Free entry to reduce short-run profits, or free exit to reduce short-run losses.
• B) Economic profits are positive, but cannot be negative.
• C) Marginal revenue is greater than marginal cost.
• D) Average revenue is less than average cost.

Understand the usage and importance of cost of production reports in manufacturing operations.

Identify factors affecting operational efficiency and their measurement through various metrics.

Identify and differentiate between job order costing and process costing systems.

Apply the concepts of equivalent units of production in calculating costs in a process costing environment.

---

Definitions:

Put Option

A financial contract that gives the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a specified price within a specified time.

Sell Calls

An investment strategy involving the selling of call options, where the seller grants the buyer the right to purchase an underlying asset at a specified price within a certain period.

Buy Warrants

Options that give the holder the right to purchase a company's stock at a specified price before a certain date.

Employee Stock Option

A privilege, sold by one party to another, that gives the buyer the right, but not the obligation, to buy (call) or sell (put) a stock at an agreed-upon price within a certain period or on a specific date.