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:

Staff Members

Individuals employed by an organization or institution who contribute to its operations and services.

Presence

The state or fact of existing, occurring, or being present in a place or thing.

Informed Commitment

A decision or pledge made with a full understanding of the facts, implications, and consequences.

Engaged Acceptance

is the mindful practice of actively embracing present experiences without judgment, often used in therapeutic contexts.