Entry into a perfectly competitive industry to occurs whenever:
A)accounting profit is equal to zero.
B)accounting profit is greater than zero.
C)economic profit is greater than zero.
D)economic profit is equal to zero.

Question

Quizplus · Accepted Answer

Firms enter a perfectly competitive industry when economic profit is greater than zero, as this indicates that firms can earn more than their opportunity costs, attracting new entrants.

Entry into a Perfectly Competitive Industry to Occurs Whenever