In the Theory of Perfect Competition, the Assumption of Easy

question 6

Multiple Choice

In the theory of perfect competition, the assumption of easy entry into and exit from the market implies

• A)positive economic profits in the long run.
• B)losses in the long-run equilibrium.
• C)zero economic profits in the long run.
• D)zero economic profits in both the short run and the long run.
• E)positive economic profits in both the short run and the long run.

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Definitions:

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A legal concept that requires certain types of contracts to be executed in writing and signed by all parties to be legally enforceable.

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