When Firms Are Neither Entering nor Exiting a Perfectly Competitive

question 429

Multiple Choice

When firms are neither entering nor exiting a perfectly competitive market,

• A)total revenue must equal total variable cost for each firm.
• B)economic profits must be zero.
• C)price must equal average variable cost for each firm.
• D)Both a and c are correct.

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Definitions:

Countries

Geographically and politically defined areas, recognized as distinct entities in political geography.

Income Inequality

The uneven distribution of income within a population, often leading to social and economic issues.

India

A country in South Asia, known for its vast diversity in cultures, languages, and religions, and as the world's largest democracy.

Increasing

Refers to a situation where there is a rise in the quantity or quality of a particular economic variable or indicators.