The key characteristic which prevents firms in a perfectly competitive industry from earningeconomic profits in the long run is:The absence of foreign competitors.The absence of information regarding the price of inputs such as labor and capital.The absence of restrictions on entry and exit into or out of the industry.The absence of government regulations.

In perfect competition there are large number of buyers and sellers selling homogeneous goods which…

The key characteristic which prevents firms in a perfectly competitive industry from earning economic profits in the long run is: The absence of foreign competitors. O The absence of information regarding the price of inputs such as labor and capital. The absence of restrictions on entry and exit into or out of the industry. The absence of government regulations.

The key characteristic which prevents firms in a perfectly competitive industry from earning economic profits in the long run is: The absence of foreign competitors. O The absence of information regarding the price of inputs such as labor and capital. The absence of restrictions on entry and exit into or out of the industry. The absence of government regulations.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Exhibit 8-19 Long-run perfectly competitive industry Price per unit (dollars) 25 20 15 10 5 0 5 10 B D S₁ D₁ 15 20 25 Quantity of output (thousands of units per week) 30 S₂ 35 D₂