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:

Charlayne Hunter

An American journalist and civil rights activist recognized as one of the first two African American students admitted to the University of Georgia in 1961.

Desegregation

The process of eliminating racial segregation, often specifically referring to the ending of enforced separation in schools and public places in the United States.

Nonviolent Resistance

A method of protest or struggle for political or social goals which rejects the use of violence, utilizing tactics like civil disobedience instead.

Gradualism

The belief in or the policy of advancing toward a goal by gradual, often slow stages, rather than by abrupt changes.