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28 Sep 2019
Which of the following is/are NOT necessary condition(s) for long-run equilibrium under perfect competition (select all that apply)?
A. No firm has an incentive to enter/exit the market.
B. Producer surplus for each firm equals zero.
C. At least some firms are selling at a price above marginal cost
D. Each firm earns zero economic profit
E. Each firm is maximizing profit.
Which of the following is/are NOT necessary condition(s) for long-run equilibrium under perfect competition (select all that apply)?
A. No firm has an incentive to enter/exit the market.
B. Producer surplus for each firm equals zero.
C. At least some firms are selling at a price above marginal cost
D. Each firm earns zero economic profit
E. Each firm is maximizing profit.
Divya SinghLv10
28 Sep 2019
Related textbook solutions
Related questions
In a monopolistic competition as well as in monopoly,
Answer:
| a. |
there are at most a few firms in each market. |
|
| b. |
profit is zero in a long-run equilibrium for each firm. |
|
| c. |
price exceeds marginal revenue for each firm. |
|
| d. |
entry and exit by firms are unrestricted. |
