A Competitive Price-Taker Firm Would Be Willing to Remain in the Industry

question 148

Multiple Choice

A competitive price-taker firm would be willing to remain in the industry in the long run at zero economic profit because

• A) it would find it too difficult to exit from the industry in the long run.
• B) accounting profit would be negative.
• C) it is covering all costs, including the opportunity cost of capital and labor.
• D) its sunk costs would prevent it from leaving the industry.