In the long run, a firm will enter a competitive industry if
A)total revenue exceeds total cost.
B)the price exceeds average total cost.
C)the firm can earn economic profits.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

In the long run, a firm will enter a competitive industry if it can earn economic profits, which occurs when total revenue exceeds total cost and the price exceeds average total cost.

In the Long Run, a Firm Will Enter a Competitive