Which of the Following Statements Is Not Characteristic of a Perfectly

question 23

Multiple Choice

Which of the following statements is not characteristic of a perfectly competitive industry in long-run equilibrium?

• A)A profit-maximizing firm may produce any output level at which P < LRATC.
• B)Every firm produces at an output level at which MC = LRATC.
• C)Ceteris paribus, there is no tendency for firms to either enter or exit the industry.
• D)No firm earns an economic profit.
• E)All of the above statements are characteristic of a perfectly competitive industry in long-run equilibrium.

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Definitions:

Persons Versus Situations

A debate in psychology concerning the relative influence of personal traits and situational factors on human behavior.

Behavior

Behavior refers to the actions or reactions of an organism or system, usually in response to the environment, which can be observable or measurable.

Funder

A term often referring to an individual or organization that provides financial resources for projects or research.

Situations

External environments or contexts in which an individual finds themselves, which can influence behavior and decision-making processes.