Long-Run Economic Profit Does Not Exist for Fixed Factors Like

question 114

Multiple Choice

Long-run economic profit does not exist for fixed factors like land because

• A) bidding drives up the price of the factor until no economic profit exists.
• B) there is no market for such factors.
• C) these factors have L-shaped isoquants.
• D) these factors will earn economic profits.

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Definitions:

Specific Environment

Includes the people and groups with whom an organisation interacts.

Environmental Uncertainty

Refers to unpredictable changes and complexities in an organization's external environment that can affect its operations and decision-making processes.

External Environment

All external factors and forces that can affect an organization's performance, including economic, social, political, and technological aspects.

Competitive Advantage

The attributes or conditions that allow an organization to outperform its competitors.