Refer to Figure 8.7.1 above. When market price equals $40, the long run level of output will be:

A) q₁
B) q₂
C) q₃
D) q₂ or q₃

Long Run Level

A period in economics where all inputs or production factors can be varied, and all costs are variable, allowing for full adjustment to changes.

Market Price

The existing cost at which one can buy or sell a service or asset.

Output

The total amount of goods or services produced by a company, industry, or economy within a specific period.