Which of the Following Statements Is Correct

question 127

Multiple Choice

Which of the following statements is correct?

• A) Purely competitive firms, monopolistically competitive firms, and pure monopolies all earn zero economic profits in the long run.
• B) Purely competitive firms, monopolistically competitive firms, and pure monopolies all earn positive economic profits in the long run.
• C) In the long run, purely competitive firms and monopolistically competitive firms earn zero economic profits, while pure monopolies may or may not earn economic profits.
• D) Monopolistically competitive firms earn zero economic profits in both the short run and the long run.

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Definitions:

Accountant

A professional who performs accounting functions such as audits or financial statement analysis.

Client

A client is an individual or entity that engages the professional services or advice of another, establishing a professional relationship.

Civil Lawsuits

Legal actions between private parties (individuals or entities), not involving criminal penalties, where the plaintiff seeks compensation or remedial action for wrongs alleged.

Racketeering Influenced and Corrupt Organizations Act

A federal law, often referred to as RICO, designed to enable the prosecution of criminal acts performed as part of an ongoing organization.