Which of the Following Statements Concerning Equilibrium in the Long

question 31

Multiple Choice

Which of the following statements concerning equilibrium in the long run is not true?

• A)Most firms earn economic profits in the long run.
• B)The firm can vary its plant size in the long run.
• C)Economic profits are eliminated as new firms enter the industry in the long run.
• D)For firms in long-run equilibrium, P = MC = AC.

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Definitions:

Fear

An emotional response to perceived threats or danger, characterized by feelings of anxiety and apprehension.

Shame

A painful emotion caused by consciousness of wrongdoing, inadequacy, or embarrassment.

Guilt

A feeling of responsibility or remorse for some offense, crime, wrong, whether real or imagined.

Sibling Abuse

The physical, emotional, or sexual abuse of one sibling by another.