In the long-run equilibrium, perfectly competitive firms make zero economic profit because of
A) government regulations.
B) the ability of firms to enter and exit.
C) inefficient production processes.
D) high fixed costs.
B
Economics
You might also like to view...
Largesse and Ginor are major producers of commercial aircraft. Which action indicates that the two firms are colluding?
a. Largesse has a binding contract with its main supplier of raw materials. b. Both firms benefit from economies of scale in their industry. c. Largesse has a binding contract with Ginor to restrict production. d. Both firms earn zero economic profits over the long run.
Economics
The three variables predicted by forecasting are the timing, magnitude, and length of exchange rate movements.
a. true b. false
Economics