In the Long Run,profits Will Equal Zero in a Competitive

question 113

Multiple Choice

In the long run,profits will equal zero in a competitive market because of

• A) constant returns to scale.
• B) identical products being produced by all firms.
• C) the availability of information.
• D) free entry and exit.

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Definitions:

Absolutism

A political theory and form of government where unlimited, complete power is held by a centralized sovereign individual, without checks or balances from any other part of the state or government.

Ottoman Empire

A historical empire founded at the end of the 13th century in northwestern Anatolia by the Turkish tribal leader Osman, lasting until the end of World War I.

Louis XIV

Known as the Sun King, he was a French monarch of the House of Bourbon who reigned for 72 years, making him the longest-reigning monarch in European history, noted for his absolute rule and the lavish Palace of Versailles.

Apollo

In ancient Greek and Roman mythology, a god associated with light, music, and healing, also known as the sun god and the patron of the arts.