Afirms have no incentive to enter or exit the industry. select one: a. market price is equal to minimum long. run average cost. b. each firm earns a normal return. c. both a and c d. all of the above

The correct answer is "d. all of the above"

Explanation: In a perfectly-competitive industry a firm have no incentive to enter or exit the industry when:

- market price is equal to minimum long-run average cost.

- each firm earns a normal return.

This happens because in perfect competition companies reach a long-term equilibrium where extraordinary benefits are eliminated.

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