Which of the Following Is True About the Long Run

question 130

Multiple Choice

Which of the following is true about the long run operations of perfectly competitive firms?

• A) They produce with productive efficiency.
• B) They produce with allocative efficiency.
• C) They earn zero economic profits.
• D) all of the above

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Definitions:

Characterised

Described in terms of distinctive qualities or features.

Direct

In financial and business contexts, this term refers to a method or approach that involves straight interaction without intermediary channels, often used in marketing to describe direct communication or sales to customers.

NCI Allocation

Refers to the distribution of Net Current Assets among various parties or accounts, primarily focusing on how non-controlling interest (NCI) is allocated in consolidated financial statements.

Equity Account

An account that represents the owner's interest in a company's assets, typically reflecting the amount of funds that remain for the owners after all liabilities have been subtracted.