If a price-taker industry is in long-run equilibrium, the market price in the industry will be just sufficient to cover the firm's average
A) total costs.
B) fixed costs.
C) variable costs.
D) variable costs plus a 10 percent accounting profit.

Question

Quizplus · Accepted Answer

In long-run equilibrium, firms in a price-taker industry earn zero economic profit, meaning the market price covers all costs, including average total costs.

If a Price-Taker Industry Is in Long-Run Equilibrium, the Market