In a perfectly competitive market, which of the following statements is true?
A.In the long run, the price will change to reflect whatever change we observe in production cost.
B.The existence of profits leads firms to exit the industry, while losses lead firms to enter the industry.
C.In the long run, economic profits are positive.
D.Perfect competition generates prices greater than marginal costs.

Question

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The Answer of In a perfectly competitive market, which of the following statements is true?
A.In the long run, the price will change to reflect whatever change we observe in production cost.
B.The existence of profits leads firms to exit the industry, while losses lead firms to enter the industry.
C.In the long run, economic profits are positive.
D.Perfect competition generates prices greater than marginal costs.

In a Perfectly Competitive Market, Which of the Following Statements