Firms in long-run equilibrium in a perfectly competitive industry ...

[karen]

Firms in long-run equilibrium in a perfectly competitive industry will produce at the low points of their average total cost curves because
 a. free entry implies that long-run profits will be zero no matter how much each firm produces.
  b. firms seek maximum profits and to do so they must choose to produce where average costs are minimized.
  c. firms maximize profits and free entry implies that maximum profits will be zero.
  d. firms in the industry desire to operate efficiently.

Question 2

Positive economic profits exist for a firm in the long run if price is above
 a. long-run average cost.
  b. long-run marginal cost.
  c. long-run total cost.
  d. long-run variable cost.

[ambernicolefink]

Answer to Question 1

c

Answer to Question 2

a

[karen]

Excellent

[bigcheese9]

Thanks for the timely response, appreciate it