Which of the Following Is True

question 184

Multiple Choice

Which of the following is true?

• A) Price takers will not be able to earn economic profits in the long run, but competitive price searchers will be able to do so.
• B) Competitive price searchers will not be able to earn economic profits in the long run, but price takers will be able to do so.
• C) Neither competitive price searchers nor price takers will be able to earn economic profits in the long run.
• D) Both competitive price takers and price searchers will be able to earn economic profits in the long run.

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Definitions:

Opportunity To Retreat

The option or possibility for an individual or group to withdraw from an uncomfortable, challenging, or dangerous situation safely.

Fait Accompli

A French term meaning "accomplished fact"; something that has already been done and cannot be changed.

Distributive Bargaining

A method of negotiation where the goal is to distribute a limited amount of resources in a manner that maximizes one's own benefit.

Limited Resource

Any asset which is scarce or finite, creating constraints in its allocation and necessitating efficient management.