In a Perfectly Competitive Market, When the Price Is Below

question 137

Multiple Choice

In a perfectly competitive market, when the price is below the minimum average total cost for all firms:

• A)accounting profits will be positive.
• B)firms will likely enter the market.
• C)the price will eventually rise, once enough firms have left the market.
• D)economic profits will be equal to zero.

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Definitions:

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