In a Perfectly Competitive Market, Which of the Following Statements

Multiple Choice

In a perfectly competitive market, which of the following statements is true?

A) In the long run, price will change to reflect whatever change we observe in production cost.
B) The existence of profits leads firms to exit the industry and losses leads firms to enter.
C) In the long-run, economic profits are positive.
D) Perfect competition generates prices greater than marginal costs.