If a Profit-Maximizing Competitive Firm Has Constant Returns to Scale

question 41

True/False

If a profit-maximizing competitive firm has constant returns to scale, then its long-run profits must be zero.

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Definitions:

Independent Trader

An individual who engages in the buying and selling of financial instruments such as stocks, bonds, commodities, and derivatives, using their own capital.

National Government

The organization responsible for governance and administration of a nation, typically composed of executive, legislative, and judicial branches.

Exchange Rate

The value of one currency for the purpose of conversion to another, determining how much one currency is worth in terms of another.

Purchasing Power

Refers to the financial ability of an individual or group to buy goods and services, often influenced by income levels and inflation rates.