Question

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

0 0
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Answer #1

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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