Question
In the long-run equilibrium, a competitive firm earns
Answer: Option D
Answer: (d)
Making the assumption that the market demand curve remains unchanged, higher market supply will reduce the equilibrium market price until the price = long-run average cost.
At this point, each firm is making normal profits only. There is no further incentive for the movement of firms in and out of the industry and a long-run equilibrium has been established.
Was this answer helpful ?
Answer: (d)
Making the assumption that the market demand curve remains unchanged, higher market supply will reduce the equilibrium market price until the price = long-run average cost.
At this point, each firm is making normal profits only. There is no further incentive for the movement of firms in and out of the industry and a long-run equilibrium has been established.
Was this answer helpful ?
More Questions on This Topic :
Question 4. The marginal revenue of a monopolist is:
....
Question 9. In Economics, production means
....
Submit Solution