Which of the Following Statements Is True

question 125

Multiple Choice

Which of the following statements is true?

• A)A long-run competitive equilibrium can only be achieved in constant-cost industries.
• B)When an industry achieves a long-run competitive equilibrium, industry output will not change in the future.
• C)A long-run competitive equilibrium outcome is not economically efficient.
• D)When an industry reaches a long-run competitive equilibrium, the typical firm in the industry breaks even.

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Definitions:

Revenue Activity

Activities undertaken by a business that result in the earning of income, typically from the sale of goods or provision of services.

Cash Investments

Financial assets such as stocks, bonds, or real estate purchased with the expectation of generating a return on investment.

Statement of Cash Flows

A financial statement detailing the impact of alterations in balance sheet accounts and income on cash and cash equivalents, segmented into operating, investing, and financing activities.

Stockholders

Individuals or entities that own one or more shares of stock in a corporation, making them owners of a portion of the company.