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Four Market Model Summary: Perfect Competition
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Problem 1
Problem 2
Problem 3
Problem 4
Problem 5
Problem 6
Problem 7
Problem 8
Problem 9
Problem 10
Four Market Model Summary: Perfect Competition
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11. Perfect Competition / Four Market Model Summary: Perfect Competition / Problem 10
Problem 10
Why can't firms in a perfectly competitive market achieve economic profit in the long run?
A
Because firms can achieve accounting profit but not economic profit.
B
Because there are high barriers to entry.
C
Because firms are able to set their own prices.
D
Because the price stabilizes at the minimum average total cost, eliminating economic profit.
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