15. The long-run equilibrium (price, output, and a number of firms) in a perfectly competitive market: A. is achieved when heterogeneous products are offered by the firms. B. may not exist when the price is higher than the minimum average variable cost. C. is achieved when there exist barriers to enter the market. D. always generate positive profits to the firms. E. does not have the allocative efficiency property.

15. The long-run equilibrium (price, output, and a number of firms) in a perfectly competitive market: A. is achieved when heterogeneous products are offered by the firms. B. may not exist when the price is higher than the minimum average variable cost. C. is achieved when there exist barriers to enter the market. D. always generate positive profits to the firms. E. does not have the allocative efficiency property.

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

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

Chapter10: Price-searcher Markets With Low Entry Barriers

Section: Chapter Questions

Problem 15CQ

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