Multiple Choice
Assume that the home construction industry is perfectly competitive and is in long-run competitive equilibrium. It follows that:
A) marginal cost equals long-run average total cost.
B) there will be incentive for new firms to enter the industry.
C) marginal cost exceeds long-run average total cost.
D) firms in the industry enjoy economic profits.
Correct Answer:
Verified
Correct Answer:
Verified
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