In the Long Run, for a Perfectly Competitive Market, If

question 224

Multiple Choice

In the long run, for a perfectly competitive market, if economic profit is

• A) less than zero, then some firms will exit the market and the market supply curve will shift leftward.
• B) greater than zero, then some firms will enter the market and the market supply curve will shift rightward.
• C) equal to zero, then there is no entry or exit of firms into or out of the market.
• D) All of the above answers are correct.