Day: December 10, 2018

In the long run, for a perfectly competitive market ……. ?

Select ONE answer:

1. if economic profit is equal to zero then there is no entry or exit of firms into or out of the market.
2. if economic profit is greater than zero, then some firms will enter the market and the market supply curve will shift rightward.
3. if economic profit is less than zero, then some firms will exit the market and the industry supply curve will shift leftward.
4. All of the above answers are correct.

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS5 classes.

The answer is 4

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