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Neither Price Takers nor Competitive Price Searchers Will Be Able

Question 187

Multiple Choice

Neither price takers nor competitive price searchers will be able to earn long-run economic profit because


A) with low entry barriers, the entry and exit of firms result in prices that are equal to per-unit costs in the long run.
B) competition from new firms will result in higher prices in the market, which offset any economic losses they earn.
C) in both markets, firms charge a price equal to marginal cost.
D) in both markets, firms produce products that are identical to the products produced by their competitors.

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