Which of the Following Is True of a Perfectly Competitive

question 57

Multiple Choice

Which of the following is true of a perfectly competitive market?

• A) If economic profits are earned then the price will fall over time.
• B) In long-run equilibrium P > MR = SRMC < SRATC = LRAC.
• C) A constant-cost industry exists when the entry of new firms has a significant effect on their cost curves.
• D) If the input prices rise the long-run supply curve is downward sloping.

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