Multiple Choice
When the market is in long-run equilibrium in a perfectly competitive market, this implies that in the long run means
A) no firm in the industry has an incentive to exit.
B) no firm outside the industry has an incentive to enter.
C) no firm in the industry has an incentive to increase or decrease its output.
D) all of these conditions are met in the long run equilibrium.
Correct Answer:
Verified
Correct Answer:
Verified
Q5: What happens to the price of the
Q6: Figure 10-6<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 10-6
Q7: If the opportunity cost of capital is
Q8: Zero economic profit means that the firm's
Q9: Which of the following is a characteristic
Q11: A firm can stay in business while
Q12: In the short run, only a limited
Q13: Figure 10-2<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 10-2
Q14: Figure 10-1<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 10-1
Q15: The implications of the zero economic profit