Which of the following is true in the long run for both perfect competition and monopoly? 1Firms cannot earn economic profit in the long run. 2Individual firms have no ability to control the price of their output but must accept the market price. 3Firms go out of business in the long run if total revenue cannot cover total cost. 4Firms can earn economic profit in the long run.

A) in perfect competitive market:- 1) in perfect competitive market, there are many number of…

Answered: Which of the following is true in the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Which of the following is true in the long run for both perfect competition and monopoly?

	1	Firms cannot earn economic profit in the long run.
	2	Individual firms have no ability to control the price of their output but must accept the market price.
	3	Firms go out of business in the long run if total revenue cannot cover total cost.
	4	Firms can earn economic profit in the long run.

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