Asked by
Mulisa Lapane
on Oct 08, 2024
Verified
Which of the following distinguishes the short run from the long run in pure competition?
A) Firms can enter and exit the market in the long run but not in the short run.
B) Firms attempt to maximize profits in the long run but not in the short run.
C) Firms use the MR = MC rule to maximize profits in the short run but not in the long run.
D) The quantity of labor hired can vary in the long run but not in the short run.
Pure Competition
A market structure characterized by a large number of buyers and sellers dealing in perfectly substitutable goods or services.
Market Entry
Refers to the process or strategy employed by an organization to start selling its products or services in a new market or industry segment.
Profit Maximization
The technique used by entities to determine the most profitable pricing and output levels.
- Define the contrast between short-term and long-term decision-making strategies in completely competitive market environments.
Verified Answer
KO
Learning Objectives
- Define the contrast between short-term and long-term decision-making strategies in completely competitive market environments.