In a perfectly competitive market, all firms in the long run earn:
A) positive economic profit.
B) positive accounting profit.
C) zero economic profit.
D) zero accounting profit.
Question 2
Which of the following statements is true?
A) Network effects act as barriers to entry in a market.
B) Economies of scale act as incentives for new firms to enter a market.
C) If a firm is enjoying economies of scale, then its product must have network effects.
D) If a firm's product has network effects, then the firm must be enjoying economies of scale.
