In a competitive market with free entry and exit, if all firms have the same cost structure, then
a. all firms will operate at their efficient scale in the short run.
b. all firms will operate at their efficient scale in the long run.
c. the price of the product will differ across firms.
d. Both a and b are correct.
b
Economics
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A market exchange rate which has been adjusted for inflation is called a
A) nominal exchange rate. B) foreign market price index. C) real exchange rate. D) domestic exchange factor.
Economics
In the long run, both monopolistic competition and perfect competition result in:
a. a wide variety of brand-name choices for consumers. b. an efficient allocation of resources. c. zero economic profit for firms. d. excess capacity.
Economics