In the Long Run

question 201

Multiple Choice

In the long run,

• A)both monopolists and perfectly competitive firms produce at minimum long-run average total cost.
• B)a monopolist will exit the industry if he is earning zero economic profit.
• C)a monopolist will always charge a higher price than he charges in the short run.
• D)consumer surplus is smaller if an industry is a monopoly than if it is perfectly competitive.

---

Definitions:

Net Income

The profit of a company after all expenses, including taxes and costs, have been deducted from total revenue.

Net Profit

The actual profit after working expenses not included in the calculation of gross profit have been paid.

External Users

Individuals or entities outside a company, such as investors and creditors, who rely on financial information to make decisions.

Accounting Information

Data related to the financial transactions and status of an organization, used for decision-making, planning, and financial reporting.