Which of the Following Is True for a Perfectly Competitive

question 96

Multiple Choice

Which of the following is true for a perfectly competitive market in long-run equilibrium?

• A)There is no incentive for new firms to enter the market.
• B)Each firm in the market earns zero economic profit.
• C)There is no incentive for existing firms to leave the market.
• D)All of the above are correct.

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Definitions:

Naive Idealism

A worldview characterized by the belief in a perfect or ideal scenario, often without considering practical limitations or the complexity of real situations.

Social Interactions

The process by which individuals act and react in relation to others, crucial for the development and maintenance of society and social relationships.

Cognitive Development

The study of how thinking, problem solving, and intelligence change as people age.

Balanced Diet

A diet that contains the proper proportions of carbohydrates, fats, proteins, vitamins, minerals, and water necessary to maintain good health and energy levels.