In the Long Run, a Firm in a Perfectly Competitive

question 89

Multiple Choice

In the long run, a firm in a perfectly competitive industry will supply output only if its total revenue covers its

• A)explicit costs plus its implicit costs.
• B)fixed costs.
• C)implicit costs.
• D)explicit costs.

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Definitions:

Periodic Net Income

Periodic net income refers to the total earnings of a company, after accounting for all expenses and taxes, over a specific financial reporting period.

Brokerage Fees

Charges that are paid to a broker for executing transactions or providing specialized services.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and gives holders voting rights and a share in the company's profits through dividends.

Fair Value Method

An accounting approach where assets and liabilities are valued based on current market prices.