Which of the following is NOT a necessary condition for long-run equilibrium under perfect competition? a. Prices are relatively low. b. No firm has an incentive to enter the market. c. Each firm is maximizing profit. d. No firm has an incentive to exit the market. e. Each firm earns zero economic profit.
Added by James L.
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Prices are relatively low: This is not necessarily a condition for long-run equilibrium under perfect competition. While prices tend to be lower in perfectly competitive markets due to the high level of competition, it is not a requirement for equilibrium. Prices Show more…
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