If Perfectly Competitive Firms Are Maximizing Their Profit and Are

question 55

Multiple Choice

If perfectly competitive firms are maximizing their profit and are making an economic profit,the market ________ in a short-run equilibrium and ________ in a long-run equilibrium.

• A) is; is
• B) is; is not
• C) is not; is
• D) is not; is not
• E) is; might be

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Definitions:

Domestic Price

The price of goods or services within a country's borders, as opposed to the price of those goods or services in international markets.

Free Trade

An economic policy that allows imports and exports with little to no barriers like tariffs, quotas, or subsidies.

Pairs of Shoes

Units of footwear intended to be worn on people's feet, typically sold, bought, or produced in matching sets of two.

Domestic Price

The price of goods or services within a country's borders, unaffected by import or export factors.