The Phenomenon That Causes Resources in Perfectly Competitive Industries to Shift

The phenomenon that causes resources in perfectly competitive industries to shift toward their highest valued use in the long run is for entry and exit to occur until ________.

A) the market price equals the minimum of marginal cost
B) the market price equals the minimum of average variable cost
C) the market price equals the minimum of average total cost
D) all firms earn positive economic profits

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free