One Difference Between the Short Run and the Long Run

question 178

Multiple Choice

One difference between the short run and the long run is that perfectly competitive firms

• A) always earn positive economic profit in the short run, but never in the long run.
• B) can earn positive, negative, or zero economic profit in the short run, but will earn zero economic profit in the long run.
• C) earn zero economic profit in the short run, but will earn positive economic profit in the long run.
• D) always earn more economic profit in the long run.

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Definitions:

Achievement Test

A type of ability test that measures what one has learned. Types of achievement tests include survey battery tests, diagnostic tests, and readiness tests.

Percentiles

A measure that indicates the value below which a given percentage of observations in a group of observations falls.

Stanines

Derived from the term “standard nines,” this is a standardized score frequently used in schools. Often used with achievement tests, stanines have a mean of 5 and a standard deviation of 2, and range from 1 to 9.

T-scores

Standardized scores with a mean of 50 and a standard deviation of 10, used to compare an individual's score against a normative sample.