Which of the Following Statements Is TRUE

question 89

Multiple Choice

Which of the following statements is TRUE?

• A) The presence of positive economic profit in a perfectly competitive market is consistent with the characteristics of a long-run competitive equilibrium.
• B) When firms in a perfectly competitive market incur economic losses, some will exit in the long run, thereby shifting the industry supply curve rightward.
• C) If a profit-maximizing firm in a perfectly competitive market is making an economic profit, then it must be producing at a level of output where price is greater than average total cost.
• D) If a profit-maximizing firm in a perfectly competitive market is incurring an economic loss, then it must be producing at a level of output where price is greater than average total cost.

---

Definitions:

Individualism

A social theory favoring freedom of action for individuals over collective or state control.

Collectivism

A cultural orientation where people prioritize the goals and interests of the group over individual achievement.

Exporting

The process of sending goods or services produced in one country to another country for sale or trade.

Foreign Markets

Markets outside an organization's home country where it seeks to sell its products or services.