When Firms Are Neither Entering nor Exiting a Perfectly Competitive

question 100

Multiple Choice

When firms are neither entering nor exiting a perfectly competitive market,

• A)total revenue must equal total cost for each firm.
• B)economic profits must be zero.
• C)price must equal the minimum of marginal cost for each firm.
• D)Both a and b are correct.

---

Definitions:

Asset Account

An account on a company's balance sheet that represents a resource with economic value that is expected to provide future benefit.

Supplies

Items or materials used in the daily operations of a business.

Unearned Revenue

Money received by a business for goods or services yet to be delivered or performed, recorded as a liability on the balance sheet until earned.

Services Revenue

Revenue generated from providing services, as opposed to selling goods or products.