ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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### Long-Run Equilibrium in a Perfectly Competitive Market

In the long-run equilibrium of a perfectly competitive market with identical firms, which of the following will be true?

1. **There will be no incentive for firms to enter or exit the market.**
2. **Every firm will produce the quantity of output at which its average total costs are minimized.**
3. **Every firm will earn 0 economic profit.**
4. **All of the other choices will be true.**
5. **Every firm's marginal cost will equal its marginal revenue.**
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Transcribed Image Text:### Long-Run Equilibrium in a Perfectly Competitive Market In the long-run equilibrium of a perfectly competitive market with identical firms, which of the following will be true? 1. **There will be no incentive for firms to enter or exit the market.** 2. **Every firm will produce the quantity of output at which its average total costs are minimized.** 3. **Every firm will earn 0 economic profit.** 4. **All of the other choices will be true.** 5. **Every firm's marginal cost will equal its marginal revenue.**
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