In a perfectly competitive market in the long run,which of the following is not correct?
A)Firms are attempting to maximize profit.
B)Economic profits are zero.
C)There are no better uses for the firm's resources.
D)Firms are maximizing total revenue.

Question

Quizplus · Accepted Answer

In a perfectly competitive market in the long run, firms are attempting to maximize profit, economic profits are zero, and there are no better uses for the firm's resources. However, firms are not maximizing total revenue as this would not necessarily result in maximizing profit. In a perfectly competitive market, firms must also consider their costs in addition to their revenue in order to determine the optimal level of output that will result in maximum profit.

In a Perfectly Competitive Market in the Long Run,which of the Following