Which of the Following Is Consistent with Farming as a Competitive

question 125

Multiple Choice

Which of the following is consistent with farming as a competitive market?

• A)A large percentage of costs are for advertising.
• B)Negative economic profit in the long run.
• C)Positive economic profit in the long run.
• D)Zero economic profit in the long run.

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Definitions:

Firms

Firms are business organizations engaged in industrial, commercial, or professional activities, aiming to generate profits.

Circular Flow Model

An economic model that depicts the continuous flow of money, goods, services, and factors of production between households and businesses in an economy.

Economy

An arrangement for creating, distributing, and using goods and services within a specified geographic region.

Doghouses

Doghouses are small shelters or structures designed to provide a safe and secure outdoor environment for dogs to sleep, rest, and be protected from the elements.