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.
E) All of the above statements are characteristic of a perfectly competitive industry in long-run equilibrium.
Correct Answer:
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A)
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