Which of the Following Statements About a Perfectly Competitive Industry

question 154

Multiple Choice

Which of the following statements about a perfectly competitive industry in long-run equilibrium is true?

• A)In order to stay in the industry each firm is making an economic profit.
• B)Losses are tolerable because of high fixed costs.
• C)Individual firms will have no incentive for technological improvement.
• D)Firms must exhibit economies of scale.
• E)Each firm is producing at the minimum point on its LRAC curve.

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Definitions:

Traditional Societies

Communities that adhere to long-established cultural norms and practices.

Cross-Cultural Differences

Variations in customs, beliefs, practices, and social behaviors among different cultures.

Gender Roles

Socially constructed roles and behaviors considered appropriate for individuals based on their identified or perceived gender.

Social Construction

The theory that many aspects of society are not innate but are developed or invented by cultural and social practices.