Which of the Following Is NOT Correct Concerning Perfectly Competitive

question 87

Multiple Choice

Which of the following is NOT correct concerning perfectly competitive firms in the long run?

• A) Long-run economic profits are zero.
• B) Price equals minimum long-run average cost.
• C) Entrepreneurs earn the opportunity cost of their investment.
• D) The opportunity cost of capital is zero.

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Definitions:

Gasoline Costs

The expenses incurred from purchasing gasoline, often a significant variable cost for motorists and businesses reliant on transportation.

Truck Rents

Fees charged for leasing or renting trucks, typically used for transporting goods or materials.

Total Costs

The complete sum of all expenses incurred by a business in producing goods or services, including both fixed and variable costs.

Labor

Represents the human effort, both physical and mental, used in the production of goods and services.