Properties of Long-Run Competitive Equilibrium with Free Entry Include

question 4

Multiple Choice

Properties of long-run competitive equilibrium with free entry include

• A) The equilibrium price must equal the minimum AC
• B) Firms must earn zero profits
• C) Active firms must produce at their efficient scale of production
• D) All of these

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Definitions:

Identification

In a sale of goods, the express designation of the specific goods provided for in the contract.

Buyer

An individual or entity that acquires goods or services in exchange for money.

Lessee

A person who pays for the use or possession of another’s property.

Shipment Contract

A contract in which the seller is required to ship the goods by carrier. The buyer assumes liability for any losses or damage to the goods after they are delivered to the carrier. Generally, a contract is assumed to be a shipment contract if nothing to the contrary is stated in the contract.