In the long run in a perfectly competitive market:
A. supply is perfectly elastic when all firms have the same cost structure.
B. firms operate at an efficient scale.
C. firms earn zero economic profits.
D. All of these are true.
Answer: D
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Frictional unemployment explains why unemployment rises during a recession and falls during an economic expansion.
Select whether the statement is true or false. A. True B. False
Single-parent households are disproportionately represented among those in poverty
Indicate whether the statement is true or false
If a firm has a U-shaped long-run average cost curve,
a. its fixed cost rises as output rises. b. it must have increasing returns to scale at low levels of production and decreasing returns to scale at high levels of production. c. it must have increasing returns to each input at low levels of production and decreasing returns to each input at high levels of production. d. the firm can maximize its output by operating at the point of minimum long-run average cost.
Which country has had a higher growth rate than the U.S. over about the last 120 years?
a. India b. Mexico c. United Kingdom d. Pakistan