In a Competitive Market with Identical Firms

question 197

Multiple Choice

In a competitive market with identical firms,

• A)an increase in demand in the short run will result in a new price above the minimum of average total cost, allowing firms to earn a positive economic profit in both the short run and the long run.
• B)firms cannot earn positive economic profit in either the short run or long run.
• C)firms can earn positive economic profit in the long run if the long-run market supply curve is upward sloping.
• D)free entry and exit into the market requires that firms earn zero economic profit in the long run even though they may be able to earn positive economic profit in the short run.

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Definitions:

Successful Transition

The process of smoothly moving from one state or condition to another in a way that achieves intended outcomes.

Delegate Tasks

The act of assigning responsibility and authority to someone else to complete specific activities while retaining the ultimate accountability for their outcome.

Subordinate

An individual who is lower in rank or position, typically subject to the authority or control of another within an organizational hierarchy.

Project Completion

The phase in project management where all the tasks are completed, objectives are met, and the project deliverables are approved and handed over.