In the Long Run, Neither Competitive Price Takers nor Competitive

question 17

Multiple Choice

In the long run, neither competitive price takers nor competitive price searchers will be able to earn economic profits because

• A) entry barriers into these markets are high, raising the costs of each firm.
• B) the government will dictate moderate prices for these firms.
• C) competition will force prices down to the level of per-unit production costs.
• D) marginal revenue is always less than marginal cost when barriers to entry are low.

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Definitions:

Unintended Retention

A situation where items, information, or conditions are kept or continue to exist unintentionally, often leading to adverse effects.

Special-Cause Variation Chart

A tool used in quality control to identify and analyze unexpected, non-random sources of variation in a process or system.

Concentric Circles

A model or pattern consisting of circles sharing the same center, expanding outward from the center in increasing radii.

Run and Control Charts

Run and control charts are tools used in the field of statistics and quality control for monitoring, controlling, and improving process performance over time by charting data points.