The Basic Distinction Between the Short Run and the Long

question 8

Multiple Choice

The basic distinction between the short run and the long run in a perfectly competitive industry is that in the long run,firms

• A) earn economic profits.
• B) are free to enter or exit.
• C) face vertical demand curves.
• D) have zero marginal costs.
• E) produce the highest possible output rates.

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Definitions:

Anterolateral Surface

The front and side area of an anatomical structure or body part.

Obturator Externus

A muscle situated on the outer surface of the pelvic bone which acts to rotate the thigh laterally.

Piriformis

A muscle in the gluteal region of the lower limb, involved in the rotation of the thigh and known for its relation to the sciatic nerve.

Inversion

A movement that tilts the sole of the foot towards the midline of the body, opposite to eversion.