In the Long Run, Assuming That the Owner of a Firm

question 466

Multiple Choice

In the long run, assuming that the owner of a firm in a competitive industry has positive opportunity costs, she

• A)should exit the industry unless her economic profits are positive.
• B)will earn zero accounting profits but positive economic profits.
• C)will earn zero economic profits but positive accounting profits.
• D)should ignore opportunity costs because they are a type of sunk cost that disappears in the long run.

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Definitions:

Decentralized

A system or organization where decision-making power is distributed among multiple units or levels, rather than concentrated at a single point.

Integration

The process of combining or coordinating separate elements into a unified whole, often used in technical and organizational contexts.

Elaboration

The process of adding more detail or information to something, often to clarify or explain further.

Methods

Different ways or strategies of accomplishing a task or solving a problem.