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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.

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