Multiple Choice
Which of the following is a condition for long-run equilibrium in a competitive industry?
A) Each firm in the industry is earning zero economic profit.
B) The inputs employed in the industry earn less than they would had they been used elsewhere.
C) Each firm in the industry will produce that level of output at which marginal cost is the lowest.
D) The number of new entrants into the industry is positive.
Correct Answer:
Verified
Correct Answer:
Verified
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