When the market is in long-run equilibrium in a perfectly competitive market, this implies that in the long run means

Question

Quizplus · Accepted Answer

In a long-run equilibrium in a perfectly competitive market, all firms have no incentives to exit or enter, as they are earning zero economic profit. Moreover, all firms are producing at their efficient scale and there is no incentive for them to increase or decrease output. Therefore, all the conditions mentioned in choices A, B, and C are met in the long-run equilibrium.

When the Market Is in Long-Run Equilibrium in a Perfectly