Does a Competitive Long-Run Equilibrium Require Cost-Minimization

question 78

Multiple Choice

Does a competitive long-run equilibrium require cost-minimization?

• A) Yes, if firms fail to be as efficient as their competitors, they are driven out of the market.
• B) No, in the long run, firms make zero profits.
• C) Yes, if they didn't, even less efficient firms would enter the industry.
• D) No, because competition ensures their survival.

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Definitions:

Paradoxical

Something that appears self-contradictory or absurd but in reality expresses a possible truth.

Hypnagogic

Relating to the transitional state immediately before falling asleep, characterized by vivid sensory phenomena.

REM Rebound

The phenomenon of increased REM sleep experienced after a period of REM sleep deprivation.

REM Sleep

A stage of sleep characterized by rapid eye movements, more dreaming, and bodily movement, and faster pulse and breathing.