Multiple Choice
Which of the following statements regarding the long-term equilibrium is TRUE?
A) As new firms enter a market, each existing firm increases the quantity it produces.
B) Firms leave a market if they are making zero economic profit.
C) Entry and exit stop when firms are making an economic profit.
D) Entry and exit stop when firms make zero economic profit.
Correct Answer:
Verified
Correct Answer:
Verified
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Q44: In the long run, perfectly competitive firms
Q45: A perfectly competitive firm's short-run supply curve
Q46: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -The figure above
Q47: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -In the above
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Q50: Perfect competition implies that<br>A) there are many
Q51: A perfectly competitive firm's short-run shutdown point
Q52: Suppose a perfectly competitive market is in
Q53: A perfectly competitive firm shuts down if