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:

Account Value

The total monetary worth of an investment or trading account at any given point in time.

Interest Rate

The rate charged or paid for the use of money, typically expressed as an annual percentage of the principal.

Annual Interest Rate

The percentage increase in money that occurs over a year, which includes interest on loans, deposits, or investments.

Investments

Assets or items acquired with the goal of generating income or appreciating in value over time.