In the Long Run, Firms Will Exit a Perfectly Competitive

question 4

Multiple Choice

In the long run, firms will exit a perfectly competitive industry if:

• A) excess profits exceed zero.
• B) excess profits are less than zero.
• C) total profit equals zero.
• D) excess profits equal zero.

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Definitions:

Hyper-norms

Fundamental principles and values that are universally accepted across cultures and societies.

Human Dignity

The inherent worth of all individuals, deserving of respect and ethical treatment, regardless of circumstances or status.

Basic Rights

Fundamental entitlements believed to belong to every person, including rights to freedom, safety, privacy, and equality before the law.

Discrimination

Unfair or prejudicial treatment of individuals or groups based on characteristics such as race, gender, age, or sexual orientation.