?

AP® Microeconomics

Free Version

Upgrade subject to access all content

Moderate

Steve's Farm in LR eq.

APMICR-FNJ5YB

Steve owns a farm and is part of a perfectly competitive industry that is said to be in long-run equilibrium.

Given what you know of the characteristics of long-run equilibrium in this market structure, which of the following is most likely to be TRUE?

A

Some firms will join the industry.

B

Some firms will leave the industry.

C

Consumers can expect prices to go down.

D

Firms are earning a return on investment that is just enough to cover their economic costs.

E

Individual firms are not operating at the minimum points on their average total cost curves.