In the long run, a firm in a perfectly competitive industry will supply output only if its total revenue covers its
A) explicit plus its implicit costs.
B) fixed costs.
C) implicit costs.
D) explicit costs.

Question

Quizplus · Accepted Answer

In the long run, a firm in a perfectly competitive industry will continue to supply output only if its total revenue covers both its explicit and implicit costs, ensuring it earns normal profit.

In the Long Run, a Firm in a Perfectly Competitive