In the Long Run, a Perfectly Competitive Market Will

question 266

Multiple Choice

In the long run, a perfectly competitive market will

• A)produce only the quantity of output that yields a long-run profit for the typical firm.
• B)supply whatever amount consumers will buy at a price which earns the market an economic profit.
• C)supply whatever amount consumers demand at a price determined by the minimum point on the typical firm's average total cost curve.
• D)generate a long-run equilibrium where the typical firm operates at a loss.

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Definitions:

Section 179

A provision in the U.S. tax code that allows businesses to deduct the full purchase price of qualifying equipment and/or software within the tax year it was purchased.

Maximum Deduction

The highest amount that can be subtracted from taxable income, as allowed by tax laws.

Cost Recovery Deduction

A tax deduction that allows a taxpayer to recover the cost of an investment over time through depreciation, amortization, or depletion.

50% Bonus

A premium payment of half the worth of an item, salary, or stipulated amount as an additional reward.