Long-run competitive equilibrium
A) is realized only in constant-cost industries.
B) will never change once it is realized.
C) is not economically efficient.
D) results in zero economic profits.

Question

Quizplus · Accepted Answer

In the long-run competitive equilibrium, firms are earning only normal profits, which means that economic profits are equal to zero. This is because in a competitive market, firms produce at the lowest point on their average total cost curve, which only allows for normal profits. Therefore, the correct option is D.

Long-Run Competitive Equilibrium