In Long-Run Perfectly Competitive Equilibrium

question 27

Multiple Choice

In long-run perfectly competitive equilibrium:

• A) all firms suffer economic losses.
• B) all firms earn zero economic profits.
• C) all firms earn positive economic profits.
• D) barriers prevent the entry of new firms.

---

Definitions:

Annual Interest Rate

The percentage increase in the value of money due to interest, calculated on a yearly basis.

Amortize

The method of distributing a loan into a sequence of set payments across a duration, encompassing both the principal amount and interest.

End-of-Year Payments

Financial disbursements made at the conclusion of a calendar or fiscal year, often related to dividends, bonuses, or debt settlements.

Annual Interest Rate

The percentage increase in money owed or invested over a year, due to interest.