In the long run, when price is greater than average total cost, some firms in a competitive market will choose to enter the market.

Name: In the long run, when price is greater than average total cost, some firms in a competitive market will choose to enter the market.
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Question

Quizplus · Accepted Answer

When price is greater than average total cost, firms in a competitive market can make a profit, attracting new firms to enter the market to capture some of that profit.

In the Long Run, When Price Is Greater Than Average