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Which of the Following Statements Is Not Characteristic of a Perfectly

Question 83

Multiple Choice

Which of the following statements is not characteristic of a perfectly competitive industry in long-run equilibrium?


A) A profit-maximizing firm may produce any output level at which P < LRATC.
B) Every firm produces at an output level at which MC = LRATC.
C) Ceteris paribus, there is no tendency for firms to either enter or exit the industry.
D) No firm earns an economic profit.

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