Question 3 Of 20Luis and Sarah just purchased a piece of land and a tractor. They plan to start growing and selling organic peas.They have heard that the market for organic peas is perfectly competitive.What does that mean in terms of long-run profit?Firms will earn zero economic profit in the long run.Firms will earn positive economic profits in the long run.Firms will earn zero accounting profit in the long run.Firms will earn negative economic profits in the long run.Luis and Sarah want to know the quantity they should produce to maximize profit. As their economic advisor, yourecommend that theyO produce until marginal revenue is equal to price.produce as much as possible, regardless of cost.produce until marginal cost is equal to marginal revenue.produce until price falls below the average variable cost.

Perfectly Competitive Market is the market in which buyers and sellers are large in numbers and they…

Answered: What does that mean in terms of…

Business

Economics

What does that mean in terms of long-run profit?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter24: Perfect Competition

Section: Chapter Questions

Problem 13E

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