Which of the Following Statements About a Perfectly Competitive Industry

Multiple Choice

Which of the following statements about a perfectly competitive industry in long-run equilibrium is true?

A) In order to stay in the industry each firm is making an economic profit.
B) Losses are tolerable because of high fixed costs.
C) Individual firms will have no incentive for technological improvement.
D) Firms must exhibit economies of scale.
E) Each firm is producing at the minimum point on its LRAC curve.