In the long-run equilibrium, perfectly competitive firms make ...

[sarasara]

In the long-run equilibrium, perfectly competitive firms make zero economic profit because of
 
  A) government regulations.
  B) the ability of firms to enter and exit.
  C) inefficient production processes.
  D) high fixed costs.

Question 2

Of the following, the best example of private information is when
 
  A) Michael knows the price of a gallon of milk at the minimart but Michelle doesn't know.
  B) you know some of your used car's defects but a potential buyer cannot find out about them until after buying.
  C) you don't know the quality of a used car and must hire a trained mechanic who tells you all its defects.
  D) you pay the owner of a used car a little extra and she lets you know all of the car's defects.

[Jordin Calloway]

Answer to Question 1

B

Answer to Question 2

B