In the Long Run

question 237

Multiple Choice

In the long run

• A) a firm can shut down, but it cannot exit the industry.
• B) there are no fixed factors of production.
• C) a firm can vary all inputs, but it cannot change the mix of inputs it uses.
• D) all firms must make economic profits.

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Definitions:

Demand Curves

A demand curve represents the relationship between the quantity of a good demanded and its price, typically showing an inverse relationship.

Shift Right

In economic terms, a shift to the right of a demand or supply curve represents an increase in demand or supply.

Remaining Firms

The number of businesses that continue to operate in a market after others have exited, often in response to economic conditions or competitive pressures.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers at those prices.