Determine whether the following statements about a perfectly competitive market are TRUE OR FALSE. Statement 1: The demand curve facing the market is horizontal.
Statement 2: Entry of new firms will drive the accounting profits of the existing firms to zero in the long run.

Question

Determine whether the following statements about a perfectly competitive market are TRUE OR FALSE. Statement 1: 	 The demand curve facing the market is horizontal. 
 Statement 2: 	 Entry of new firms will drive the accounting profits of the existing firms to zero in the long run.

Accepted Answer

Statement 1: False; Statement 2: False

Answer

Statement 1: True; Statement 2: False

Answer

Statement 1: True; Statement 2: True

Answer

Statement 1: False; Statement 2: True

Crowdly

Determine whether the following statements about a perfectly competitive market ...

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