Match the Following Unions to Their Descriptions

question 20

Essay

Match the following unions to their descriptions.

---

Definitions:

Zero Economic Profit

Occurs when a firm's total revenue is equal to its total explicit and implicit costs, indicating no abnormal profit.

Perfectly Competitive

A market structure characterized by a large number of small firms, homogenous products, and free entry and exit, leading to the optimal distribution of resources.

Constant Returns

A condition in production where increasing the amount of inputs results in a proportional increase in outputs.

U-shaped

A graphical representation describing a situation or relationship that initially decreases, reaches a minimum point, and then increases.