Which of the Following Is True for Firms That Produce

question 112

Multiple Choice

Which of the following is true for firms that produce in markets where there are no barriers to entry?

• A) The firms will always make positive economic profits in the long run.
• B) The firms will always make positive economic profits in the short run.
• C) The firms will always make zero economic profits in the short run.
• D) The firms will always make zero economic profits in the long run.

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Definitions:

Behaviorists

Psychologists who focus on observable behaviors and the ways in which learning influences behavior, often excluding thoughts and feelings from their analysis.

Determined

Possessing a strong motivation or resolve; having a firm decision to do something.

Scientifically Studied

A research approach that utilizes systematic and empirical methods to investigate phenomena, ensuring reliability and validity of findings.

Circular Reasoning

A logical fallacy in which the conclusion of an argument is used as a premise of the same argument; essentially, the reasoning goes in a circle without proving anything.