Question content area

Part $1$

What determines entry and exit of firms in a perfectly competitive industry in the long$$ run?

Part $2$

In a perfectly competitive industry in the long$$ run,

Part $3$

A$.$

new firms will enter if existing firms are making a profit and existing firms will exit if they are experiencing losses.

B$.$

new firms will enter if existing firms are making a profit and existing firms will exit if they are breaking even or experiencing losses.

C$.$

new firms will enter if market demand exceeds market supply and existing firms will exit if market supply exceeds market demand.

D$.$

new firms will enter if price is above the shutdown point and existing firms will exit if price is below the shutdown point.

E$.$

new firms cannot enter the market due to barriers but existing firms will exit if they are experiencing losses.