Which Characteristic of Perfect Competition Ensures That Economic Profit Will

question 142

Multiple Choice

Which characteristic of perfect competition ensures that economic profit will be zero in the long run?

• A)each firm's output is small in relation to total market supply
• B)buyers and sellers are fully informed about the price and availability of all resources and products
• C)the product is homogeneous
• D)there is freedom of entry and exit in the market
• E)firms are price takers

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