Multiple Choice
The price- taking competitive equilibrium of a large number of identical firms implies that
A) the net revenue of each firm is zero.
B) no firm earns economic profits in the long run.
C) no firm can earn more from its assets by investing them elsewhere.
D) B and C
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q29: A decrease in income will cause a
Q30: If a firm is not making economic
Q31: For a price- taker, average revenue is
Q32: Should a firm that is making a
Q33: In the short run firms can continue
Q35: A monopoly that makes a loss will
Q36: For a price- making firm, when marginal
Q37: A price- taker is a firm which
Q38: Explain why fixed costs do not exist
Q39: In the short run, under what circumstances