When a Perfectly Competitive Industry Is in Long-Run Equilibrium, Firms

question 83

Multiple Choice

When a perfectly competitive industry is in long-run equilibrium, firms maximize profits, and entry forces the price down

• A)until all firms with losses leave the industry.
• B)until each firm can earn acceptable level of economic profit.
• C)until price becomes tangent to the long-run average cost curve.
• D)until the long-run average cost curve rises above the demand curve.

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Definitions:

Social Connections

The relationships individuals form with others in their community, which can offer support, a sense of belonging, and increase well-being.

Community Ties

The connections, relationships, or bonds formed among members within a community, contributing to social cohesion and mutual support.

Socially Engaged

Involvement and participation in community activities or social groups, demonstrating a commitment to social causes or interactions.

Proportion of People

The fraction or percentage of a population that exhibits a particular trait or falls within a specific category.