In the Long Run in Perfect Competition

question 7

Multiple Choice

In the long run in perfect competition:

• A) Normal profits are made.
• B) No profits are made.
• C) Abnormal profits are made.
• D) A loss is made.

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Definitions:

Bond Owners

Individuals or entities holding debt securities issued by governments, corporations, or other entities that promise to pay back with interest.

Organization Issuing

Refers to entities, such as companies or governmental bodies, that release or provide specific items, documents, or securities.

Solvent

Referring to an entity's ability to meet its financial liabilities through available assets.

Real Rate Of Return

The annual percentage of profit earned on an investment, adjusted for changes in the inflation rate.