One Difference Between the Long Run and the Short Run

question 48

Multiple Choice

One difference between the long run and the short run in a perfectly competitive industry is that:

• A)economic profits in the long run are always greater than they are in the short run.
• B)economic profits in the short run are always greater than they are in the long run.
• C)firms necessarily earn zero economic profit in the long run but may earn positive or negative economic profit in the short run.
• D)firms necessarily earn positive economic profit in the long run but may earn positive or negative economic profit in the short run.

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Definitions:

Endemic Species

Localized, native species that are not found anywhere else in the world. Compare with cosmopolitan species.

Human Population

The total number of humans currently living on Earth, which is subject to change due to birth, death, and migration rates.

Tropical Location

Geographic areas that are situated close to the equator, characterized by warm temperatures year-round and, in many cases, a high level of biodiversity.

Protected Area

A clearly defined geographical space, recognized and managed through legal or other effective means, to achieve the long-term conservation of nature.