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Why Will a Perfectly Competitive Firm Continue to Produce in the Long

Question 125

Multiple Choice

Why will a perfectly competitive firm continue to produce in the long run even though there are no economic profits?


A) Firms care about accounting profits, not economic profits.
B) All employed resources are earning their opportunity cost.
C) It has no fixed costs in the long run.
D) There are barriers to exit in perfect competition.

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