Which of the following is TRUE for a perfectly competitive market in long-run equilibrium?

Question

Quizplus · Accepted Answer

In a perfectly competitive market in long-run equilibrium, the market price is equal to the minimum average total cost of production for each firm. This means that each firm earns zero economic profit (B). Because firms are earning zero economic profit, there is no incentive for new firms to enter the market (A) and no incentive for existing firms to leave the market (C). Therefore, all of the above are correct (D).

Which of the Following Is TRUE for a Perfectly Competitive