If a Profit-Maximizing Competitive Firm Has Constant Returns to Scale

question 41

True/False

If a profit-maximizing competitive firm has constant returns to scale, then its long-run profits must be zero.

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Definitions:

Short-Term Bank Loan

A loan obtained from a bank that has a maturity of one year or less.

Accounts Payable

Money owed by a company to its creditors for products or services that have been delivered or used but not yet paid for.

NAICS

The North American Industry Classification System, which is used to categorize businesses and industries for statistical purposes in the United States, Canada, and Mexico.

Governmental ID System

Systems implemented by governments to issue identification to its citizens, often used for verification purposes and accessing government services.