Question 5 of 20Choose the answer that makes the statement correct.For firms in perfectly (purely) competitive markets, long-run economic profits are [dropdown menu] because firms will [dropdown menu] this market if profits are less than that and [dropdown menu] if profits are greater than that.Dropdown 1 options: - zero- positive- negativeDropdown 2 options: - exit- enterDropdown 3 options:- exit- enter- shut down **Question 5 of 20**Choose the answer that makes the statement correct.For firms in perfectly (purely) competitive markets, long-run economic profits are [dropdown] because firms will [dropdown] this market if profits are less than that and [dropdown] if profits are greater than that.**Dropdown Options:**- zero- negative- positiveThis exercise tests the understanding of long-run economic profit scenarios in perfectly competitive markets. In such markets, firms typically earn zero economic profit in the long run because if profits are greater than zero, new firms will enter the market, increasing supply and decreasing prices until profits reach zero. Conversely, if profits are less than zero, firms will exit the market, decreasing supply and increasing prices until remaining firms earn zero economic profit.

In a perfectly competitive market there are large number of firms producing similar and identical…

Question 5 Of 2 Choose the answer that makes the statement correct. For firms in perfectly (purely) competitive markets, long-run economic profits are becau this market if profits are less than that and if profits are greater than that. enter exit exit enter shut down

Question 5 Of 2 Choose the answer that makes the statement correct. For firms in perfectly (purely) competitive markets, long-run economic profits are becau this market if profits are less than that and if profits are greater than that. enter exit exit enter shut down

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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