In a Purely Competitive Industry

question 175

Multiple Choice

In a purely competitive industry,

• A) there will be no economic profits in either the short run or the long run.
• B) economic profits may persist in the long run if consumer demand is strong and stable.
• C) there may be economic profits in the short run but not in the long run.
• D) there may be economic profits in the long run but not in the short run.

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Definitions:

Latitude

A geographic coordinate that specifies the north-south position of a point on the Earth's surface.

Permafrost

Of arctic tundra, a perpetually frozen layer of soil that prevents water from draining.

Biome

A region (often discontinuous) characterized by its climate and dominant vegetation.

Rainfall

The amount of precipitation, in the form of liquid water drops, that falls to the ground from clouds.