Which of the following statements regarding the long-term equilibrium is TRUE? Question 18 options: Firms leave a market if they are making zero economic profit. Entry and exit stop when firms make zero economic profit. Entry and exit stop when firms are making an economic profit. As new firms enter a market, each existing firm increases the quantity it produces.

A firm is in long run when the firm can change all inputs and there is no fixed cost.

Answered: Which of the following statements…

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter22: Price Takers And The Competitive Process

Section: Chapter Questions

Problem 6CQ: Suppose that the development of a new drought-resistant hybrid seed corn leads to a 50 percent...

See similar textbooks

Related questions

Question

Which of the following statements regarding the long-term equilibrium is TRUE?

Question 18 options:

	Firms leave a market if they are making zero economic profit.
	Entry and exit stop when firms make zero economic profit.
	Entry and exit stop when firms are making an economic profit.
	As new firms enter a market, each existing firm increases the quantity it produces.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions