Which of the following statements are true concerning long run equilibrium? a: Price equals marginal cost. b: Price equa...
Which of the following statements are true concerning long run equilibrium?
a: Price equals marginal cost.
b: Price equals average total cost.
c: Economic profits are greater than zero.
|
Just a |
|
|
Just c |
|
|
a, b, and c |
|
|
Just a and b |
|
|
Just b |
Homework Answers
In the long run, the P=MC=ATC
The industry earns normal profits as total revenue = total cost so there are no economic profits greater than zero
option (D) just a and b
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