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:

Direct Labor

The labor or workforce directly involved in the production process of goods or services, whose costs can be directly attributed to the products being manufactured.

Process Cost System

An accounting method used to track production costs for large numbers of identical units that are mass-produced in a continuous fashion.

Completed Job

A project or task that has been finished and meets all criteria or specifications that were established at its inception.