In the Long-Run Equilibrium, Perfectly Competitive Firms Make Zero Economic

question 368

Multiple Choice

In the long-run equilibrium, perfectly competitive firms make zero economic profit because of

• A) government regulations.
• B) the ability of firms to enter and exit.
• C) inefficient production processes.
• D) high fixed costs.

---

Definitions:

Competitive Positions

The standing of a company in relation to its competitors in the industry, determined by factors such as market share, product quality, and brand strength.

Strategic Intent

The focused determination to achieve an organization's long-term goals, often embodying its competitive advantage and core values.

Tangible

Physical assets or properties that can be seen, touched, and measured, opposed to intangible assets like patents or copyrights.

Corporate Goal

The long-term objectives that a corporation aims to achieve, which guide its strategic and operational decisions.