Asked by
Sydney Milella
on Oct 08, 2024
Verified
Long-run competitive equilibrium:
A) is realized only in constant-cost industries.
B) will never change once it is realized.
C) is not economically efficient.
D) results in zero economic profits.
Competitive Equilibrium
A state in a market where supply equals demand, with no external influences altering the price or quantity.
Constant-Cost Industries
Industries where the costs of production do not change as the total output increases or decreases.
Economic Efficiency
A state where resources are allocated in a way that maximizes the production of goods and services.
- Acquire an understanding of the interplay among price, average total cost, and marginal cost in long-run equilibrium scenarios.
Verified Answer
JS
Learning Objectives
- Acquire an understanding of the interplay among price, average total cost, and marginal cost in long-run equilibrium scenarios.