You Can Tell a Firm Is Operating in a Market

question 52

Multiple Choice

You can tell a firm is operating in a market that is in long-run competitive equilibrium if

• A) economic profits are positive.
• B) economic profits are negative.
• C) accounting profits are negative.
• D) accounting profits are zero.
• E) economic profits are zero.

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Definitions:

Economy Perspectives

Different viewpoints or analyses regarding how economies operate, grow, and are structured.

Investors

Individuals or entities that allocate capital with the expectation of receiving financial returns.

Citizens

Members of a state or nation who are legally recognized as belonging to that country and have specific rights, duties, and responsibilities.

Ideological Analysis

The examination of underlying beliefs, values, and biases in cultural texts or practices, exploring how they shape societal norms and perspectives.