Asked by
Matthew Stuart
on Dec 12, 2024Verified
When a profit-maximizing firm in a competitive price-searcher market is in long-run equilibrium, price equals
A) marginal cost, and profits are positive.
B) average total cost, and profits are zero.
C) marginal cost, and profits are zero.
D) average total cost, and profits are positive.
Competitive Price-searcher Market
A market structure where firms set their own prices because products are differentiated, giving them some degree of pricing power.
Average Total Cost
The cost per unit produced, found by taking the total production costs and dividing it by the quantity of items produced.
- Familiarize oneself with the environmental conditions and ensuing outcomes pertinent to competitive price-searcher markets in short-term and long-term equilibrium periods.
- Describe the decision-making process of firms regarding output, pricing, and profit maximization in competitive price-searcher markets.
Verified Answer
AR
Learning Objectives
- Familiarize oneself with the environmental conditions and ensuing outcomes pertinent to competitive price-searcher markets in short-term and long-term equilibrium periods.
- Describe the decision-making process of firms regarding output, pricing, and profit maximization in competitive price-searcher markets.
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