Comparing the Short-Run and Long-Run Profit-Maximizing Positions of a Perfectly

question 3

Multiple Choice

Comparing the short-run and long-run profit-maximizing positions of a perfectly competitive firm,which statement is true?

• A)Price will equal marginal cost in the short run,but not necessarily in the long run.
• B)Economic profit may exist in the short run and in the long run.
• C)The firm will produce at minimum average cost in both the short and long run.
• D)Price should equal average cost in the long run,but not necessarily in the short run.
• E)The firm may have unexploited economies of scale in both the short run and the long run.

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Definitions:

Direct Social Contact

Direct social contact refers to face-to-face interactions between individuals, facilitating communication and understanding.

Groupthink

A behavioral pattern observed in groups where the need for consensus or compliance leads to unwise or ineffective decision-making results.

Lack Of Teamwork

The absence or deficiency of collaboration and cooperative effort among a group working towards common goals.

Dangerous Environment

A situation or setting that poses potential risks to physical, psychological, or well-being safety.