Which of the following assumptions about perfectly competitive markets is primarily responsible for firms having zero economic profit in long-run equilibrium? a. Each firm is small relative to the size of the industry. b. Consumers are aware of all firms' prices. c. Firms engage in strategic behaviour. d. Products are homogeneous. e. Firms can enter and exit the industry freely

Which of the following assumptions about perfectly competitive markets is primarily responsible for firms having zero economic profit in long-run equilibrium? a. Each firm is small relative to the size of the industry. b. Consumers are aware of all firms' prices. c. Firms engage in strategic behaviour. d. Products are homogeneous. e. Firms can enter and exit the industry freely

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter9: Perfect Competition

Section: Chapter Questions

Problem 10WNG

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