A Perfectly Competitive Firm Would Be Willing to Remain in the Industry

question 107

Multiple Choice

A perfectly competitive firm would be willing to remain in the industry in the long run at zero economic profit because

• A)its total revenues would be positive.
• B)accounting profit would be negative.
• C)revenue is equal to all costs, including the opportunity cost of capital and labor.
• D)its fixed costs would prevent it from leaving the industry.

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Definitions:

Generalized Conclusion

Drawing broad inferences from specific observations, often extending beyond the original scope of analysis.

Research Design

The strategic plan outlining the methods and procedures for collecting and analyzing data in a study, aimed at addressing specific research questions.

Observational Method

A research technique that involves watching and recording the behaviors of subjects in their natural environment or in a controlled setting.

Causal Logic

The relationship between a condition or variable and a particular consequence, with one leading to the other.