Which of the Following Is True of Perfect Competition in the Long

question 202

Multiple Choice

Which of the following is true of perfect competition in the long run?

• A) Firms earn positive economic profit because of economies of scale.
• B) Firms earn positive accounting profit because of government regulations.
• C) Firms earn zero economic profit because of free entry and exit of firms.
• D) Firms earn negative economic profit because of free entry and exit of firms.

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Definitions:

Collectivization

A process where private lands and enterprises are seized by the state and run by collective organizations, often associated with Soviet agricultural policies.

Nikolai Bukharin

Was a Soviet politician and Marxist theoretician, a prominent figure in the Bolshevik Revolution who later became a victim of Stalin's Great Purge.

French Popular Front

A coalition of leftist parties in France during the 1930s, known for implementing social reforms and labor laws.

1930s

Denotes the decade encompassing the years from 1930 to 1939, marked by the Great Depression, the rise of fascism, and the approach of World War II.