In the long run,in a competitive industry
A)economic profits are zero
B)firms break even
C)price equals average cost
D)all of the above

Question

​In the long run,in a competitive industry
A)​economic profits are zero
B)firms break even
C)price equals average cost
D)​all of the above

Quizplus · Accepted Answer

In the long run, competitive firms will have zero economic profits as new firms enter the industry and drive down prices. This results in firms breaking even and price equaling average cost. Therefore, all of the choices are correct.

​In the Long Run,in a Competitive Industry

In the Long Run,in a Competitive Industry