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.

---

Definitions:

Substantive

Pertains to the essential elements or specific substance of a matter, often used to describe laws or regulations that govern actual rights and duties.

Procedural Rules

Guidelines or principles that dictate the specific processes and procedures within court or administrative proceedings.

Legislative Branch

One of the three branches of the U.S. government, responsible for creating laws, consisting of the House of Representatives and the Senate.

Specific Duties

Tasks or roles defined precisely and explicitly for a particular job or function.