Which of the Following Statements Is Not Characteristic of a Perfectly

question 17

Multiple Choice

Which of the following statements is not characteristic of a perfectly competitive industry in long-run equilibrium?

• A) A profit-maximizing firm may produce any output level at which P < LRATC.
• B) Every firm produces at an output level at which MC = LRATC.
• C) Ceteris paribus, there is no tendency for firms to either enter or exit the industry.
• D) No firm earns an economic profit.

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Definitions:

Industry

Industry refers to the production of goods or services within an economy, characterized by various sectors such as manufacturing, technology, and services.

Maximum Profit

The highest possible financial gain a business can achieve in a given period, calculated by maximizing the difference between total revenues and total costs.

Per Month

A time frame or billing period referring to the activities or costs accrued within a single month.

Monopolist

An individual or entity that has exclusive control over the supply or trade of a commodity or service in a particular market.