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.
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.
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter9: Market Structure And Long-run Equilibrium
Section: Chapter Questions
Problem 9.5IP
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Question
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.
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2 |
Individual firms have no ability to control the price of their output but must accept the market price.
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3 |
Firms go out of business in the long run if total revenue cannot cover total cost.
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4 |
Firms can earn economic profit in the long run.
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