A Profit-Maximizing Firm in a Competitive Market Will Earn Zero

question 31

True/False

A profit-maximizing firm in a competitive market will earn zero accounting profits in the long run.

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Definitions:

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired together; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Operant Conditioning

A learning process where the strength of a behavior is modified by reinforcement or punishment.

Observational Conditioning

A learning process where an individual acquires behaviors by observing and imitating others.

State-Dependent Learning

The theory that information learned in a specific state of mind (e.g., emotional, physiological) is more easily recalled when in that same state.