Assume a Purely Competitive Firm Is Maximizing Profit at Some

Multiple Choice

Assume a purely competitive firm is maximizing profit at some output at which long-run average total cost is at a minimum. Then

A) the firm is earning an economic profit.
B) there is no tendency for the firm's industry to expand or contract.
C) allocative but not productive efficiency is being achieved.
D) other firms will enter this industry.