If a perfect competitor faces P = ATC in the long run, the firm will
A) earn economic profits.
B) earn economic losses.
C) leave the industry.
D) remain in the industry.
Answer is D) remain in the industry.
Economics
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In the United States each year, approximately
a. 50% of all businesses fail. b. 25% of all businesses fail. c. 10% of all businesses fail. d. 5% of all businesses fail.
Economics
What is defined as the ability of a firm to earn high profits by raising and keeping the prices of its products substantially above the levels at which those products would be priced in competitive markets?
a. Economies of scope b. Tacit collusion c. Monopoly power d. Perfect competition
Economics