When a Perfectly Competitive Market Is in Its Long-Run Equilibrium

question 167

Multiple Choice

When a perfectly competitive market is in its long-run equilibrium, the fact that the firms make zero economic profit will

• A) encourage new firms to enter the market.
• B) cause existing firms to shut down.
• C) cause existing firms to leave the market.
• D) mean that the firms' owners earn a normal return.

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Definitions:

Creatine Phosphokinase

An enzyme found in the heart, brain, and skeletal muscle that plays a key role in the energy storage and utilization processes.

Oxygen-poor Blood

Blood that has delivered its oxygen to the tissues of the body and is returning to the lungs to be reoxygenated.

Pulmonary Valves

Heart valves located at the opening of the pulmonary artery that prevent backflow of blood into the right ventricle.

Aortic Valves

The valve in the heart that controls blood flow from the left ventricle into the aorta.