In the Long Run in a Perfectly Competitive Market

question 2

Multiple Choice

In the long run in a perfectly competitive market:

• A) firms earn zero economic profits.
• B) firms operate at an efficient scale.
• C) supply is perfectly elastic when all firms have the same cost structure.
• D) All of these are true.

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Definitions:

Recruitment Costs

Expenses incurred by an organization in the process of finding and hiring new employees, including advertising, interviewing, and training expenses.

Labour Demand

The need or desire for labor within the market or economy, often influenced by economic conditions, organizational growth, and industry trends.

Minimum Wage Legislation

Laws established by governments setting the lowest hourly wage that employers can legally pay their workers.

Jurisdictions

Jurisdictions are the official power to make legal decisions and judgments, typically defined by geographic boundaries or specific areas of law.