Compared to a Perfectly Competitive Industry in Long-Run Equilibrium,an Industry

question 27

Multiple Choice

Compared to a perfectly competitive industry in long-run equilibrium,an industry under monopoly

• A) may realize economic profits in the long run.
• B) may sustain losses indefinitely and still remain in business.
• C) actively encourages competitors and thereby increases profits.
• D) continues to expand until profits are reduced to zero.
• E) can sell at a price below average variable cost and earn economic profits.

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Definitions:

Hydrothermal Vents

Openings in the sea floor that emit hot, mineral-rich water, supporting unique ecosystems that do not rely on sunlight for energy.

Pelagic Province

The ocean’s open waters.

Salt Content

The concentration of salt, particularly sodium chloride, in a given substance or environment.

Desert Soil

Soil found in arid regions, characterized by low organic matter, lack of moisture, and often high salinity levels.