In a perfectly competitive market, all firms in the long run ...

[karlynnae]

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.

[bassamabas]

Answer to Question 1

C

Answer to Question 2

A