Which of the Following Is Not an Assumption That We

question 30

Multiple Choice

Which of the following is not an assumption that we make in analyzing pure competition in the long run?

• A) Firms are free to enter into or exit from a purely competitive market.
• B) We may talk about a "representative" firm by assuming that competitive firms all have identical cost curves.
• C) Firms may increase output by expanding their plant sizes.
• D) Profits are not relevant to firm behavior anymore, because competitive firms earn zero profits in the long run.

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Definitions:

Amygdala

The amygdala is a section of the brain that is responsible for detecting fear and preparing for emergency events.

Emotion-Related Information

Data or stimuli that are specifically related to feelings or affective states, which can influence perception, decision-making, and behavior.

Polygraph Tests

A forensic tool designed to detect physiological signs of lying or truthfulness through measures of bodily responses.

Electrical Resistance

A measure of the difficulty encountered by an electric current as it flows through a conductor.