In long-run competitive equilibrium SRATC = LRATC, because if SRATC > LRATC (at the quantity of output at which MR = MC) firms would
A) have an incentive to change their plant size to produce their current output.
B) not be covering their total fixed costs.
C) not be covering their total variable costs.
D) be earning positive economic profit.
Correct Answer:
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Q136: If a market comes close to meeting
Q137: Exhibit 22-8 Q138: Exhibit 22-8 Q139: Exhibit 22-8 Q140: A perfectly-competitive firm produces 2,000 units of Q143: For a perfectly competitive firm, if price Q144: For a perfectly competitive firm, marginal revenue Q145: Equilibrium price is $17 in a perfectly Q148: Ultimately, market supply curves are upward sloping Q155: Equilibrium price is $10 in a perfectly Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
