Which Is Not True of a Perfectly Competitive Market

question 58

Multiple Choice

Which is not true of a perfectly competitive market?

• A)The typical industry demand curve is downward sloping.
• B)There is no incentive to innovate since economic profit is zero in the long-run.
• C)If the long-run average total cost curve is horizontal in the relevant range of production, perfectly competitive firms can be various sizes in long-run equilibrium.
• D)At long-run equilibrium, economic profit is less than accounting profit.