Asked by
Nayeli Carrillo
on Nov 27, 2024
Verified
Which is true of a purely competitive firm in long-run equilibrium?
A) Average fixed cost equals price.
B) Marginal cost equals marginal product.
C) Price equals marginal cost.
D) Average variable cost equals marginal cost.
Long-run Equilibrium
The state in which, over time, supply and demand are balanced, and all adjustments to economic conditions have been made, resulting in stable prices and outputs.
Marginal Cost
The hike in expense for producing another unit of a product or service.
- Depict how marginal cost, marginal revenue, price, and average total cost are interconnected within a purely competitive environment.
Verified Answer
TC
Learning Objectives
- Depict how marginal cost, marginal revenue, price, and average total cost are interconnected within a purely competitive environment.