In the Long Run,existing Firms Exit a Perfectly Competitive Market

question 63

Multiple Choice

In the long run,existing firms exit a perfectly competitive market

• A) only if economic profits are zero.
• B) if they make a positive economic profit.
• C) if normal profits are greater than zero.
• D) only if they incur an economic loss.
• E) if they either make a normal profit or if they incur an economic loss.

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Definitions:

Modular Homebuilder

A company that constructs homes in sections or modules in a factory setting, then transports them to a final location where they are assembled on-site.

Statement Of Cash Flows

The statement of cash flows is a financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company, showing how the company raises and spends cash.

Financial Statement

Documents that provide an overview of a company's financial condition, including income statement, balance sheet, and statement of cash flows.

Service Business

A type of business that provides intangible products or services to customers rather than physical goods.