36) Assume that all firms in a perfectly competitive industry are identical. In the long run, free entry and exit guarantee that all firms have zero a) accounting profit b) average total cost c) economic profit d) total fixed cost

36) Assume that all firms in a perfectly competitive industry are identical. In the long run, free entry and exit guarantee that all firms have zero a) accounting profit b) average total cost c) economic profit d) total fixed cost

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 34CTQ: Many films in the United States file for bankruptcy every year, yet they still continue operating....

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Concept explainers

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.

Question

36) Assume that all firms in a perfectly competitive industry are identical. In the long run, free entry and exit guarantee that all firms have zero

a) accounting profit

b) average total cost

c) economic profit

d) total fixed cost

Definition Definition Structure of the market that exists when many buyers and sellers exchange similar commodities and prices are fixed by market forces, demand, and supply. When there is perfect competition, a single business cannot impact the price or market value of the homogenous product.

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Graphing perfect competition