If a perfectly competitive industry is in long-run equilibrium, firms maximize profits, and the process of entry and exit results in

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In a long-run equilibrium of a perfectly competitive industry, firms produce where P = MC = AC, which maximizes profits. The process of entry and exit results in adjustments to the industry supply curve, but it does not necessarily lead to a left shift. Economic profits are also driven to zero in the long-run equilibrium, so option C is incorrect. The price will be at the level where MC = MR, which in a perfectly competitive market is the same as P = MC. Therefore, option D is also incorrect.

If a Perfectly Competitive Industry Is in Long-Run Equilibrium, Firms