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:

Uncertainty Avoidance

A cultural system of rules that minimizes ambiguity.

Cultural System

A complex ensemble of knowledge, beliefs, values, norms, customs, practices, and traditions that characterize a particular group or society.

Extraversion

A characteristic that denotes being outgoing, confident, communicative, and showing intense feelings openly.

Popular Names

Common or widely accepted names or titles within a particular culture or society, often reflecting trends or significant socio-cultural events.