Which of the Following Is a Condition of Long-Run Competitive

question 101

Multiple Choice

Which of the following is a condition of long-run competitive equilibrium?

• A)There are incentives for firms to enter the industry.
• B)There are incentives for firms to exit the industry.
• C)There is no incentive for firms to enter or exit the industry.
• D)There are incentives for firms to produce more output.
• E)There are incentives for firms to change plant size.

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Definitions:

American Rule

A legal principle that each party in a lawsuit pays its own attorney's fees, unlike the "English Rule" where the losing party pays.

Puerto Rico

An island and unincorporated territory of the United States located in the northeastern Caribbean Sea, known for its rich culture and history.

Cuba

An island nation in the Caribbean known for its significant role in Cold War politics, rich cultural heritage, and complex history with the United States.

Philippines

An archipelagic country in Southeast Asia, consisting of more than 7,000 islands, known for its diverse culture and history as a former Spanish then American colony.