Which of the following is not a condition of long-run equilibrium for perfectly competitive firms?

Question

Quizplus · Accepted Answer

In long-run equilibrium for perfectly competitive firms, price must be equal to minimum long-run average cost, which ensures that firms are operating at maximum efficiency. Economic profit being positive indicates that firms are earning more than what is required to cover all costs, which would lead to new firms entering the industry and eventually driving the price down to the minimum long-run average cost. Therefore, a positive economic profit is not a condition for long-run equilibrium in a perfectly competitive market.

Which of the Following Is Not a Condition of Long-Run