Practicing Success
Practicing Success
CUET Preparation Today
| What is the implication of the entry and exit assumption? |
In equilibrium no firm earns supernormal profit In equilibrium no firm incurs loss by remaining in production Equilibrium price will be equal to the minimum average cost of the firms All of the above |
| All of the above |
| The entry and exit assumption implies that in equilibrium no firm earns supernormal profit or incurs loss by remaining in production; in other words, the equilibrium price will be equal to the minimum average cost of the firms. |
