When a Perfectly Competitive Firm or a Monopolistically Competitive Firm

question 43

Multiple Choice

When a perfectly competitive firm or a monopolistically competitive firm is making zero economic profit

• A) the industry is in equilibrium; no firms will want to enter or exit.
• B) those firms who don't differentiate their product sufficiently will want to leave the market.
• C) those firms who wish to differentiate their product more will want to enter the market.
• D) market demand shifts to the right.
• E) the price of the output will rise in the long run.

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