Which of the characteristics of perfect competition assures that economic profit will be zero in the long run?

a. Each firm is small relative to the market.
b. Each firm has access to perfect information.
c. Goods produced in the market are homogeneous.
d. Each firm is a price taker.
e. There is easy entry and exit in the market.

E

Economics

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Define social overhead capital

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Economics

Suppose a firm can produce 70 units of a product, Zenia, by combining labor, land, capital, and entrepreneurial ability, as in the four alternative techniques shown in the table below. Assume further that the firm can hire labor at $3 per unit, land at $3 per unit, capital at $6 per unit, and entrepreneurship at $9 per unit. Techniques ABCDLabor41065Land5333Capital5244Entrepreneurship1111 Refer to the provided table, and suppose that the firm uses production technique D. If each of the 70 units of Zenia that are produced sells for $1 apiece, then how much will be the total profits of the firm from 70 units of Zenia?

What will be an ideal response?

Economics