(Figure: Perfectly Competitive Firms I) The graph represents three perfectly competitive firms. Which of the following statements is (are) TRUE? I. In the long run, each firm will produce the same quantity of output.
II) Firm 1 is the highest-cost producer and Firm 3 is the lowest-cost producer.
III) Firm 3 will produce the most output in the long run.

Question

(Figure: Perfectly Competitive Firms I) The graph represents three perfectly competitive firms. Which of the following statements is (are) TRUE?  I. In the long run, each firm will produce the same quantity of output.
II) Firm 1 is the highest-cost producer and Firm 3 is the lowest-cost producer.
III) Firm 3 will produce the most output in the long run.

Quizplus · Accepted Answer

The Answer of (Figure: Perfectly Competitive Firms I) The graph represents three perfectly competitive firms. Which of the following statements is (are) TRUE?  I. In the long run, each firm will produce the same quantity of output.
II) Firm 1 is the highest-cost producer and Firm 3 is the lowest-cost producer.
III) Firm 3 will produce the most output in the long run.

(Figure: Perfectly Competitive Firms I) the Graph Represents Three Perfectly