Firms in long-run equilibrium in a perfectly competitive industry will produce at the low points of their average total cost curves becauseQuestion 4Select one:a.firms maximize profits and free entry implies that maximum profits will be zero.b.firms in the industry desire to operate efficiently.c.firms seek maximum profits and to do so they must choose to produce where average costs are minimized.d.free entry implies that long-run profits will be zero no matter how much each firm produces.Clear my choice

In long-run equilibrium, the perfectly competitive firm's price is equal to which of the following?Question 6Select one:a.Marginal revenue.b.All of the answers provided are correct.c.Minimum short-run average total cost.d.Short-run marginal cost.Clear my choiceQuestion 7Not yet answeredMarked out of 1.00Flag questionTipsQuestion textIf input prices rise as new, perfectly competitive firms enter an industry we that this is: ....Question 7Select one:a.a decreasing-cost industry.b.none of the answers provided are correct.c.an industry with a decreasing long-run supply curve.d.an increasing-cost industry.

Under perfect competition, if an industry is characterized by positive economic profits in the short runQuestion 2Select one:a.firms will enter the market in the long run and the short-run supply curve will shift outward.b.firms will leave the market in the long run and the short-run supply curve will shift inward.c.firms will leave the market in the long run and the short-run supply curve will shift outward.d.firms will enter the market in the long run and the short-run supply curve will shift inward.Clear my choice

In long-run perfectly competitive equilibrium, which of the following is false?Group of answer choicesThere is efficient, low-cost production at the minimum efficient scale.Economic surplus is maximised.Firms earn economic profit.Economies of scale are exhausted.

Which of the following is true for a firm in long-run equilibrium in monopolistic competition? aGiven barriers to entry, the firm earns economic profits in long-run equilibrium. bThere is neither allocative nor productive efficiency. cPrice is greater than average total cost in long-run equilibrium. dThe firm is productively efficient, producing at the minimum of long-run average total cost.

Which statement is true? Group of answer choices Zero economic profits in the long run means that firms make zero accounting profits. Free entry and exit in a competitive industry means that firms make negative economic profits in the long run. A competitive firm in the long run can make positive economic profits. A competitive firm in the long run will always leave the industry as it makes zero economic profits. None of the above.