Which of the Assumptions Below Assures Us That Economic Profit

question 42

Multiple Choice

Which of the assumptions below assures us that economic profit will be zero in long-run equilibrium for perfectly competitive firms?

• A)buyers and sellers having all relevant information
• B)firms producing heterogeneous goods
• C)too few buyers
• D)easy entry and exit
• E)smallness of firms with respect to the market

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Definitions:

Forecast Error

The difference between the actual demand and the forecasted demand, indicating the accuracy of forecasting models.