In the Long Run, Assuming That the Owner of a Firm

question 466

Multiple Choice

In the long run, assuming that the owner of a firm in a competitive industry has positive opportunity costs, she

• A)should exit the industry unless her economic profits are positive.
• B)will earn zero accounting profits but positive economic profits.
• C)will earn zero economic profits but positive accounting profits.
• D)should ignore opportunity costs because they are a type of sunk cost that disappears in the long run.

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Definitions:

Delusions of Grandeur

A psychological condition where an individual believes they have more importance, power, or identity than is actually the case.

Delusions of Persecution

A type of delusion where a person believes they are being mistreated, spied on, or persecuted, often without any basis in reality.

Generalized Anxiety Disorder

Feelings of dread and foreboding and sympathetic arousal of at least six months’ duration.

Persistent Anxiety

A state of continuous worry and nervousness that may not be related to any specific threat or issue.