Assume that all firms in this industry have identical cost curves, and that the market is perfectly competitive. In the long run, how much profit will each firm in this industry earn each week?
A)$0
B)$1,000
C)$1,500
D)$2,000

Question

Assume that all firms in this industry have identical cost curves, and that the market is perfectly competitive.  In the long run, how much profit will each firm in this industry earn each week?
A)$0 
B)$1,000 
C)$1,500 
D)$2,000

Quizplus · Accepted Answer

In the long run, entry and exit will drive economic profit to zero.

Assume That All Firms in This Industry Have Identical Cost