Which of the following statements is true regarding the number of firms in equilibrium? A) NT equals NA B) NT fluctuates with market demand C) NT is greater than NA D) NT is less t... Which of the following statements is true regarding the number of firms in equilibrium? A) NT equals NA B) NT fluctuates with market demand C) NT is greater than NA D) NT is less than NA
Understand the Problem
The question is asking us to identify which statement accurately describes the relationship between NT (total number of firms) and NA (number of active firms) in an equilibrium state within a market. We need to analyze the implications of each option provided and determine the correct one based on economic principles.
Answer
NT equals NA
NT equals NA
Answer for screen readers
NT equals NA
More Information
In equilibrium, typically the number of firms in the market would adjust to where demand and supply conditions meet, resulting in a balance, which might explain NT equalling NA.
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