When a Perfectly Competitive Market Is in Long-Run Equilibrium

question 105

Multiple Choice

When a perfectly competitive market is in long-run equilibrium

• A)at least one firm makes an economic profit.
• B)all firms make zero economic profit.
• C)firms enter the market if other firms are making an economic profit.
• D)firms exit the market if other firms are incurring an economic loss.
• E)all of the above.

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Definitions:

Demand

The inclination and capability of buyers to acquire products and services at specified prices.

Increase

An upward movement in quantity, size, number, value, or intensity of a particular variable.

Market Demand

The total quantity of a product or service that all consumers in a market are willing and able to buy at various prices, given a period of time.

Related Goods

Products or services that are either complements or substitutes to one another, affecting each other's demand and supply.