Which of the following is TRUE in long-run competitive equilibrium ("market saturation")? Group of answer choices Firms earn zero economic profit Price is equal to minimum average total cost All of the above are true Firms in the market earn just enough revenue to cover their explicit (accounting) costs and opportunity costs. None of the above are true New firms have no incentive to enter the market
Which of the following is TRUE in long-run competitive equilibrium ("market saturation")? Group of answer choices Firms earn zero economic profit Price is equal to minimum average total cost All of the above are true Firms in the market earn just enough revenue to cover their explicit (accounting) costs and opportunity costs. None of the above are true New firms have no incentive to enter the market
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 1MC
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Which of the following is TRUE in long-run competitive equilibrium ("market saturation")?
Group of answer choices
Firms earn zero economic profit
Price is equal to minimum
All of the above are true
Firms in the market earn just enough revenue to cover their explicit (accounting)
None of the above are true
New firms have no incentive to enter the market
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