Characteristics of a short-run perfectly competitive equilibrium always include:
A)zero profits.
B)the condition that marginal cost is greater than average cost.
C)the condition that homogeneous firms are producing the same level of output.
D)the condition that sunk costs are zero.

Question

Quizplus · Accepted Answer

In a short-run perfectly competitive equilibrium, firms produce at a level where marginal cost equals marginal revenue, and since firms are price takers, they produce the same level of output if they have identical cost structures.

Characteristics of a Short-Run Perfectly Competitive Equilibrium Always Include