Question

If a market is perfectly competitive and is in long-run equilibrium, which of the following conditions does not hold? Price is equal to the minimum long-run average cost of production. Economic profit equals zero. The value of the last unit of output produced is equal to the value of the resources used to produce it. There is an incentive for additional firms to enter the market because existing firms are earning revenues in excess of the explicit costs of production.

Name: if a market is perfectly competitive and is in long run equilibrium which of the following conditions does not hold price is equal to the minimum long run average cost of production economic 74172
Uploaded: 2023-02-13T20:43:30-08:00
Duration: 2 min 37 s
Channel: Andrew Davis
Description: if a market is perfectly competitive and is in long run equilibrium which of the following conditions does not hold price is equal to the minimum long run average cost of production economic 74172

          If a market is perfectly competitive and is in long-run equilibrium, which of the following conditions does not hold? Price is equal to the minimum long-run average cost of production. Economic profit equals zero. The value of the last unit of output produced is equal to the value of the resources used to produce it. There is an incentive for additional firms to enter the market because existing firms are earning revenues in excess of the explicit costs of production.

Added by Elizabeth R.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Andrew Davis

02/13/2023

Step 1

Economic profit does Show more…

Show all steps

Thanks for your feedback!

If a market is perfectly competitive and is in long-run equilibrium, which of the following conditions does not hold? Price is equal to the minimum long-run average cost of production. Economic profit equals zero. The value of the last unit of output produced is equal to the value of the resources used to produce it. There is an incentive for additional firms to enter the market because existing firms are earning revenues in excess of the explicit costs of production.