Under Perfect Competition, in Long-Run Equilibrium, _____

question 90

Multiple Choice

Under perfect competition, in long-run equilibrium, _____.

• A)all firms suffer economic losses
• B)all firms suffer zero economic losses
• C)all firms earn positive economic profits
• D)barriers prevent the entry of new firms
• E)all firms start producing differentiated goods

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Definitions:

Income Distribution

How total earnings are distributed across individuals or households within an economy.

Equal Slices

A method of dividing or allocating resources, goods, or profits evenly among all parties or members.

Corporate Stock Holdings

The shares of a corporation held by an individual, group, or another corporation, representing ownership interests.

Household Income

The total pre-tax earnings received by members of a household from all sources in a given period.