Multiple Choice
If all firms in a perfectly competitive market are operating where the MC = MR and there are no economic profits,then
A) the entire industry is about to stop producing since businesses will not operate without economic profits.
B) the industry is in equilibrium with no desire for exit or entry.
C) the industry is in serious disequilibrium where the inefficient producers are likely to go bankrupt.
D) the government is about to move in with subsidies.
Correct Answer:
Verified
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