Which of the following is not a characteristic of a perfectly competitive market structure?
A) The firm is a price-taker.
B) The firm is a profit maximizer.
C) The firm's demand curve is horizontal.
D) The market demand is downward sloping.
E) The firm can earn an economic profit in the long run.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, firms cannot earn an economic profit in the long run due to free entry and exit, which drives profits to zero.

Which of the Following Is Not a Characteristic of a Perfectly