Which of the Following Is NOT a Characteristic of a Perfectly

question 31

Multiple Choice

Which of the following is NOT a characteristic of a perfectly competitive long-run equilibrium?

• A) Firms are earning zero profits.
• B) Price equals marginal cost.
• C) Price equals long-run minimum average cost.
• D) Firms are producing on the downward sloping portions of their short-run average cost curves.

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Definitions:

Formal Promise

An official commitment or assurance, often in writing, to perform a specified action or uphold a certain condition.

Interest Payment

The amount paid over a period for borrowing money or delaying the repayment of a debt, typically expressed as an annual percentage of the principal.

Maturity Date

The date on which a financial obligation or investment becomes due for payment or expires, marking the end of its term.

Bank Loan

A bank loan is a sum of money lent by a bank to a borrower at an agreed interest rate and repayment schedule.