Which of the Following Statements Is False

Multiple Choice

Which of the following statements is false?

A) The long-run equilibrium model takes into account the entry and exit of firms.
B) The long-run equilibrium model is an attempt to explain the behavior of industries.
C) Firms enter an industry when economic profits are positive.
D) The long-run equilibrium model can be applied only to U.S.industries.
E) Firms exit an industry in the long run when economic profits are negative.