For an Entire Perfectly Competitive Industry, Which of the Following

question 29

Multiple Choice

For an entire perfectly competitive industry, which of the following statements is incorrect in the long run?

• A) Economic profit for the industry equals zero.
• B) Producer surplus equals economic rent.
• C) Economic profit equals total revenues less total costs.
• D) Producer surplus for the industry equals economic profit for the industry.

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Definitions:

Income of Buyers

Refers to the purchasing power or total earnings of consumers within a market, impacting their ability to buy goods and services.

Improved Oven

A term referring to an oven with enhanced features or efficiency, signifying technological innovation or investment in capital goods.

Bakers

Professionals who prepare and bake breads, pastries, and other baked goods.

Steamed Milk

Milk that has been heated and aerated through the introduction of steam, often used in coffee beverages.