All of the following statements apply to a purely competitive market in the long run, except
A)in the long run, all inputs are variable in quantity.
B)firms can expand their plant capacities in the long run.
C)total fixed costs remain constant even when output expands in the long run.
D)firms may enter or leave the industry in the long run.

Question

Quizplus · Accepted Answer

In a purely competitive market in the long run, all costs are variable, meaning there are no fixed costs. Total fixed costs do not remain constant when output expands because, in the long run, there are no fixed costs; all costs are considered variable as firms adjust their production capacities.

All of the Following Statements Apply to a Purely Competitive