When a Perfectly Competitive Industry Is in Long-Run Equilibrium, Firms

question 190

Multiple Choice

When a perfectly competitive industry is in long-run equilibrium, firms maximize profits, and entry forces the price down

• A)until all loss making firms leave the industry.
• B)until each firm can earn acceptable level of economic profit.
• C)until price becomes tangent to the long run average cost curve.
• D)until the long average cost curve rises above the demand curve.

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Definitions:

Trust

The belief in the reliability, truth, ability, or strength of someone or something, important for fostering cooperation and agreement.

Negotiation Behavior

The actions, tactics, and strategies that individuals engage in during a negotiation process.

Game or Simulation

A structured form of play or operational model used for educational, training, analysis, or entertainment purposes, often replicating real-world scenarios.

Defined End

A clear and precise conclusion or final goal of an endeavor, task, or agreement, leaving no ambiguity regarding the outcome.