Which of the Following Occurs in Long-Run, Perfectly Competitive Equilibrium

question 155

Multiple Choice

Which of the following occurs in long-run, perfectly competitive equilibrium?

• A) All firms suffer economic losses.
• B) Barriers prevent the entry of new firms.
• C) All firms earn zero economic profits.
• D) All firms earn positive economic profits.

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Definitions:

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the number of units produced, indicating the cost per unit of output.

Pure Monopolist

A market structure in which a single seller dominates the entire market, facing no competition.

Profit-Maximizing Output

The level of production at which a company can achieve the highest possible profit, usually determined by marginal cost and marginal revenue analysis.

Nondiscriminating Monopolist

A monopolist that charges all consumers the same price for its product, without price discrimination.