If a purely competitive firm is producing at the MR = MC output level and earning an economic profit, then
A) the selling price for this firm is above the market equilibrium price.
B) new firms will enter this market.
C) some existing firms in this market will leave.
D) there must be price fixing by the industry's firms.
Correct Answer:
Verified
Q60: Q61: Long-run adjustments in purely competitive markets primarily Q62: Which of the following is true concerning Q63: Karlee's Kreations sells handbags in a purely Q64: Long-run competitive equilibrium Q66: We would expect an industry to expand Q67: If the entry or exit of firms Q68: All of the following are long-run changes, Q69: Which of the following is not a Q70: All of the following statements apply to
A)is realized only in constant-cost
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents