In a perfectly competitive market, the process of entry and exit will end when
(i)accounting profits are zero.
(ii)economic profits are zero.
(iii)price equals minimum marginal cost.
(iv)price equals minimum average total cost.
A)(i) and (ii) only
B)(ii) and (iii) only
C)(ii) and (iv) only
D)(i), (ii), (iii), and (iv)

Question

Quizplus · Accepted Answer

In a perfectly competitive market, entry and exit continue until economic profits are zero, which occurs when price equals minimum average total cost.

In a Perfectly Competitive Market, the Process of Entry and Exit