You can tell a firm is operating in a market that is in long-run competitive equilibrium if a) economic profits are zero. b) economic profits are positive. c) accounting profits are zero. d) accounting profits are negative. e) economic profits are negative.

You can tell a firm is operating in a market that is in long-run competitive equilibrium if a) economic profits are zero. b) economic profits are positive. c) accounting profits are zero. d) accounting profits are negative. e) economic profits are negative.

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter9: Perfect Competition

Section9.1: The Theory Of Perfect Competition

Problem 4ST

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Equilibrium Price and Quantity

Equilibrium refers to a state of balance that comes about because there is equality in all forces.

Question

You can tell a firm is operating in a market that is in long-run competitive equilibrium
if
a) economic profits are zero.
b) economic profits are positive.
c) accounting profits are zero.
d) accounting profits are negative.
e) economic profits are negative.

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Step 1: Define a competitive market

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