. In a perfectly competitive industry, a. Firms earn a breakeven profit in the short-run, but can either make an economic profit or make a loss in the long-run b. None of the above c. Firms can choose whether to produce or shut-down in the short-run
. In a perfectly competitive industry, a. Firms earn a breakeven profit in the short-run, but can either make an economic profit or make a loss in the long-run b. None of the above c. Firms can choose whether to produce or shut-down in the short-run
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter8: Perfect Competition
Section: Chapter Questions
Problem 33CTQ: Since a perfectly competitive firm can sell as much as it wishes at the market price, why can the...
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Q. In a perfectly competitive industry,
a. Firms earn a breakeven profit in the short-run, but can either make an economic profit or make a loss in the long-run
b. None of the above
c. Firms can choose whether to produce or shut-down in the short-run
d. Firms always charge a price equal to the minimum of AVC in the short-run
e. There are high “sunk costs” involved which act as a barrier to entry in this industry
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