Which of the following is NOT a necessary condition for long-run equilibrium under perfect competition?
A) No firm has an incentive to enter the market.
B) No firm has an incentive to exit the market.
C) Prices are relatively low.
D) Each firm earns zero economic profit.
E) Each firm is maximizing profit.
C
Economics
You might also like to view...
Who, among the following, is least likely to price discriminate?
A) The local tavern B) The local diner C) The local potato farmer D) The telephone company
Economics
Business cycle models with flexible prices
A) are all non-Keynesian models. B) were first introduced in the General Theory of Employment, Interest, and Money. C) the only business cycle models in use. D) none of the above.
Economics