Tim Tupper's term paper-typing business is a perfectly competitive firm in long-run equilibrium.Which of the following does not describes the firm's situation?
A)It will be minimizing average total cost.
B)It will be charging a price equal to marginal cost.
C)It will be charging a price equal to average total cost.
D)It will be earning a normal profit.
E)Entrepreneurs outside the industry will be eager to enter.

Question

Quizplus · Accepted Answer

In long-run equilibrium, a perfectly competitive firm earns normal profit, meaning there is no economic profit to attract new entrants.

Tim Tupper's Term Paper-Typing Business Is a Perfectly Competitive Firm