Which Statement Is True

question 210

Multiple Choice

Which statement is true?

• A)In the short run and the long run the perfect competitor will break-even.
• B)In the short run and the long run the perfect competitor will make a profit.
• C)In the short run the perfect competitor may make a profit or take a loss.
• D)In the long run the perfect competitor will make a profit,but in the short run she will break-even.

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Definitions:

Purchasing Power Parity

An economic theory that estimates the amount of adjustment needed on the exchange rate between countries so that an exchange is equivalent to each currency's purchasing power.

Eurobond

A bond issued in a currency other than the home currency of the country or market in which it is issued, often not subject to the regulations of a single country.

International Bond

A bond issued in a country by a non-domestic entity, often in a currency other than that of the issuer's country.

Purchasing Power Parity

An economic theory that compares different countries' currencies through a "basket of goods" approach to determine the relative value of currencies.