If We Observe Firms Earning Zero Economic Profits in the Short

question 206

Multiple Choice

If we observe firms earning zero economic profits in the short run, we know that

• A) the industry must be perfectly competitive.
• B) the industry must be either perfectly competitive or monopolistically competitive.
• C) there must not be any barriers to entry.
• D) any market structure is possible since firms under any market structure can earn zero profits at some time.

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Definitions:

Online Shopping Transactions

Financial transactions made over the internet involving the buying and selling of goods or services.

Payment Fraud

Illegal transactions aimed at deceitfully obtaining money, goods, or services by manipulating payment processes.

Chargeback

A transaction reversal usually initiated by the cardholder's bank, intended to serve as a form of consumer protection from fraudulent activity.

Internet Fraud

Deceptive practices and scams perpetrated online, aiming to defraud victims through means like phishing, identity theft, and financial exploitation.