Asked by
Tracy Hower
on Oct 27, 2024
Verified
A perfectly competitive industry is in a state of long-run equilibrium.Which expression must be TRUE?
A) P = MR = MC > ATC.
B) P = MR = MC < AVC.
C) P = MR = MC = ATC.
D) P > MR = MC = AVC.
Long-run Equilibrium
A state in which all factors of production and costs are variable, allowing firms to make adjustments leading to the establishment of a market balance.
Perfectly Competitive Industry
An industry characterized by many buyers and sellers, where no single entity can influence the market price of the product.
Marginal Cost
The price of manufacturing an incremental unit of a product.
- Identify the conditions for long-run equilibrium in a perfectly competitive market.
- Detail the attributes of a perfectly competitive environment conducive to efficiency.
Verified Answer
JC
Learning Objectives
- Identify the conditions for long-run equilibrium in a perfectly competitive market.
- Detail the attributes of a perfectly competitive environment conducive to efficiency.