If a Market Is Perfectly Competitive and Is in Long-Run

question 29

Multiple Choice

If a market is perfectly competitive and is in long-run equilibrium,which of the following conditions does not hold?

• A)Price is equal to the minimum long-run average cost of production.
• B)Economic profit equals zero.
• C)The value of the last unit of output produced is equal to the value of the resources used to produce it.
• D)There is an incentive for additional firms to enter the market because existing firms are earning revenues in excess of the explicit costs of production.

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