When a Perfectly Competitive Market Is in Its Long-Run Equilibrium

question 167

Multiple Choice

When a perfectly competitive market is in its long-run equilibrium, the fact that the firms make zero economic profit will

• A) encourage new firms to enter the market.
• B) cause existing firms to shut down.
• C) cause existing firms to leave the market.
• D) mean that the firms' owners earn a normal return.

---

Definitions:

Roles

The functions or parts played by individuals in a particular social, professional, or other contexts.

Peripheral Route Persuasion

A method of persuasion that relies on superficial cues or endorsements, rather than logical argument, to influence opinions or attitudes.

Offering Evidence

The act of providing information, facts, or data to support a claim, argument, or hypothesis.

Unimportant Cues

Signals or pieces of information that are deemed irrelevant or not significant to the task or situation at hand.