Which of the following is generally true in a perfectly competitive industry? *O A firm's supply curve lies above its marginal cost curve.O Firms have fixed costs in the long run.O The short-run market equilibrium is efficient if firms earn a positive profit.O Firms face barriers to entry into the industry.O Firms maximize profit at the output level at which P = MC.

Firms aim to for profit maximization thus they tend to produce a profit maximizing quantity.

Which of the following is generally true in a perfectly competitive industry? * A firm's supply curve lies above its marginal cost curve. O Firms have fixed costs in the long run. The short-run market equilibrium is efficient if firms earn a positive profit. Firms face barriers to entry into the industry. O Firms maximize profit at the output level at which P = MC.

Which of the following is generally true in a perfectly competitive industry? * A firm's supply curve lies above its marginal cost curve. O Firms have fixed costs in the long run. The short-run market equilibrium is efficient if firms earn a positive profit. Firms face barriers to entry into the industry. O Firms maximize profit at the output level at which P = MC.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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