Which of the following does not need to be true for long-run equilibrium to be attained?
A)Constant returns to scale are reached.
B)The latest in technology is utilized.
C)Profit is being maximized.
D)There is no incentive to enter or exit the industry.
E)Economic profits equal zero.

Question

Quizplus · Accepted Answer

In long-run equilibrium, it is not necessary for the latest technology to be utilized. Firms can reach long-run equilibrium without necessarily adopting the most recent technological advancements, as long as they meet other conditions such as zero economic profits, no incentive to enter or exit the industry, profit maximization, and operating under constant returns to scale.

Which of the Following Does Not Need to Be True