Solved

If Firms in a Perfectly Competitive Industry Are Making Zero

Question 294

Multiple Choice

If firms in a perfectly competitive industry are making zero economic profit, then


A) some of those firms will leave the industry, because firms cannot persistently go without making economic profit.
B) new firms will enter the industry, because the new entrants would be ensured of doing as well as in their best foregone alternative.
C) there is no incentive for either entry or exit.
D) some of the firms will temporarily shut down.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents