Learning Outcome:Describe the step-by-step process by which profit or loss reverts to normal/zero profit in the long run.

Suppose that the MC=ATC at a cost of $10 for a perfectly competitive firm.If the market price is $13, what can we conclude about this industry?Market all that are TRUE:

Group of answer choices

-The industry is in long run equilibrium.

-These perfectly competitive firms are earning an economic loss.

-The industry is NOT in long run equilibrium.

-Existing firms will exit the industry in the long run.

-New firms will enter the industry in the long run.

-These perfectly competitive firms are earning a positive economic profit.