In the Long Run

question 38

Multiple Choice

In the long run

• A)the firm shuts down if revenue is less than its avoidable costs.
• B)marginal profit is greater than zero.
• C)if economic profit is zero.
• D)supply curves are identical to the short run supply curves.

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Definitions:

Tax Revenues

The income that is gained by governments through taxation.

Federal Deficit

The financial condition that occurs when the government's expenditures exceed its revenues in a given fiscal year.

Progressive Tax

A taxation system in which the tax rate increases as the taxable amount or income increases, commonly seen in income tax systems to ensure higher earners contribute a greater proportion of their income.

Regressive Tax

A tax system in which the tax rate decreases as the taxable amount increases, disproportionately affecting lower-income individuals.