All of the following statements apply to a purely competitive market in the long run, except
A) in the long run, all inputs are variable in quantity.
B) firms can expand their plant capacities in the long run.
C) total fixed costs remain constant even when output expands in the long run.
D) firms may enter or leave the industry in the long run.

Question

Quizplus · Accepted Answer

In the long run of a purely competitive market, all inputs are variable in quantity, firms can expand their plant capacities, and firms may enter or leave the industry. However, total fixed costs are not constant in the long run and can change as a result of changes in input prices or technological advances.

All of the Following Statements Apply to a Purely Competitive