A market that is in long-run equilibrium must also be in short-run equilibrium.

Question

Quizplus · Accepted Answer

In long-run equilibrium, all firms in the market are making zero economic profit, indicating that the market has adjusted to where price equals both average total cost and marginal cost, which is also the condition for short-run equilibrium. Thus, if a market is in long-run equilibrium, it is also in short-run equilibrium because the conditions for both are satisfied.

A Market That Is in Long-Run Equilibrium Must Also Be