ong-run equilibrium of a perfectly competitive market with identical firms, which of the ng will be true? e will be no incentive for firms to enter or exit the market. y firm will produce the quantity of output at which its average total costs are minimized. y firm will earn O economic profit. f the other choices will be true. y firm's marginal cost will equal its marginal revenue.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question
### 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.**
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.**
Expert Solution
steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Knowledge Booster
Perfectly Competitive Market
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education