Asked by
Christopher Kurnia
on Nov 27, 2024
Verified
Which of the following conditions is true for a purely competitive firm in long-run equilibrium?
A) P> MC = minimum ATC.
B) P> MC > minimum ATC.
C) P = MC = minimum ATC.
D) P< MC < minimum ATC.
Long-Run Equilibrium
A state in economics where all factors of production and outputs in an industry or market adjust fully to any changes, leading to a stable condition where no participant has an incentive to change behavior.
- Distinguish the attributes and consequences of total competitive markets in long-term balance.
- Perceive the roles of marginal cost, average total cost, and price in the achievement of productive and allocative efficiency.
Verified Answer
JL
Learning Objectives
- Distinguish the attributes and consequences of total competitive markets in long-term balance.
- Perceive the roles of marginal cost, average total cost, and price in the achievement of productive and allocative efficiency.