Which of the Following Statements About a Perfectly Competitive Industry

question 154

Multiple Choice

Which of the following statements about a perfectly competitive industry in long-run equilibrium is true?

• A)In order to stay in the industry each firm is making an economic profit.
• B)Losses are tolerable because of high fixed costs.
• C)Individual firms will have no incentive for technological improvement.
• D)Firms must exhibit economies of scale.
• E)Each firm is producing at the minimum point on its LRAC curve.

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