In the Long Run,a Firm in a Perfectly Competitive Market

question 29

Multiple Choice

In the long run,a firm in a perfectly competitive market will

• A) make zero economic profit, so that its owners earn a normal profit.
• B) make zero normal profit but its owners will make an economic profit.
• C) remove all competitors and become a monopolistically competitive firm.
• D) incur an economic normal loss but not earn a positive economic profit.
• E) remove all competitors and become a monopoly.

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Definitions:

Supporting Facts

Concrete evidence or data that backs up a claim, theory, or proposition, providing credibility and substance to arguments.

Parallelism

Parallelism in writing is the use of similar structures in related words, clauses, or phrases to create a balance and rhythm in the composition.

Natural Gas

A fossil fuel consisting mainly of methane, used as an energy source for heating, cooking, and electricity generation, as well as a fuel for vehicles.

High Tax Rate

The proportion of income or revenue taken by the government through taxes is considered to be above average or burdensome.