Which of the Following Is True for a Perfectly Competitive

question 53

Multiple Choice

Which of the following is true for a perfectly competitive agricultural market with economic profits?

• A)Firms will enter and existing firms will increase their production until economic profits are zero.
• B)The profits will last indefinitely since there are barriers to entry.
• C)Firms will exit until normal profits are zero.
• D)No entry or exit will occur based on economic profits.

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