In the Long Run, Perfectly Competitive Firms Make Zero Economic

question 44

Multiple Choice

In the long run, perfectly competitive firms make zero economic profit. This result is due mainly to which of the following assumptions?

• A) few buyers and sellers
• B) unrestricted entry and exit
• C) firms must act as price takers
• D) demand for the firm's output is perfectly elastic

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Definitions:

Political Group

An organization or a collective of people who come together based on shared political interests, objectives, or ideologies.

Progressives

A group or movement in the late 19th and early 20th centuries in America that pursued reforms to address social, economic, and political issues.

Dust Bowl

Great Plains counties where millions of tons of topsoil were blown away from parched farmland in the 1930s; massive migration of farm families followed.

Soil Erosion

The process by which topsoil is worn away through the action of wind, water, or human activity, leading to reduced land fertility.