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In a perfectly competitive market, the process of entry and exit will end when

  1. accounting profits equal to zero.
  2. marginal revenue equal to the long-run average total cost.
  3. average revenue greater than the marginal cost.
  4. total revenue equal to the average total cost.

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Shree Harini V
Shree Harini VLv5
29 Aug 2020

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Related questions

In the short run, a firm operating in a monopolistically competitive market _____.

A. produces an output level where marginal revenue equals average total cost.

B. sets price equal to demand where marginal revenue equals marginal cost.

C. must earn zero economic profits.

D. maximizes revenues as well as profits.

In the short run, a firm operating in a monopolistically competitive market

A. Produces an output level where marginal revenue equals average total cost.       

B. Sets price equal to demand where marginal revenue equals marginal cost.          

C. Must earn zero economic profits.  

D. Maximizes revenues as well as profits.

Which of the following statements best describes the price, output, and profit conditions of monopolistic competition?

A. Price will equal marginal cost at the profit-maximizing level of output: profits will be positive in the long-run.

B. Price will always equal average variable cost in the short run and either profits or losses may result in the long run.

C. Marginal revenue will equal marginal cost at the sort run, profit-maximizing level of output; in the long run, economic profit will be zero.

D. Marginal revenue will equal the average total cost in the short run. long-run economic profits will be zero.

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