In Long-Run Equilibrium, the Typical Perfectly Competitive Firm Will

question 39

Multiple Choice

In long-run equilibrium, the typical perfectly competitive firm will:

• A) earn maximum economic profit.
• B) never change plant size in the long run.
• C) change output in the short run.
• D) enter or exit the industry.

---

Definitions:

Conditioned Stimulus

A previously neutral stimulus that, after association with an unconditioned stimulus, comes to trigger a conditioned response.

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention before it is associated with an unconditioned stimulus.

Extinction

The process through which a conditioned response is weakened by presenting the conditioned stimulus without the unconditioned stimulus.

Paired

Refers to a condition or instance where two items or individuals are coupled or linked together, often for the purpose of comparison or connection.