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

question 81

Multiple Choice

If a perfectly competitive industry is in long-run equilibrium, firms maximize profits, and the process of entry and exit results in

• A)all firms producing where P = MC = AC.
• B)a left shift in the industry supply curve.
• C)a few firms earning economic profits.
• D)the price falling to the point where MR > MC.

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