When a perfectly competitive market is in long-run equilibrium, which of the following situations occurs?

Question

Accepted Answer

All firms make zero economic profit.

Answer

Old firms exit the market if they are incurring an economic loss.

Answer

At the equilibrium price, marginal revenue equals minimum average variable cost.

Answer

At least one firm makes an economic profit.

Answer

New firms enter the market if firms in the market are making an economic profit.

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