Which of the following is (are) true?

Question

Quizplus · Accepted Answer

A) This statement is not always true. In perfect competition, price will be equal to marginal cost in the long run equilibrium.
B) This statement is not true. In perfect competition, price will adjust to reflect changes in production costs in the long run.
C) This statement is true. In perfect competition, to maximize profits, a firm will operate where P = MR = MC. The firm will produce the quantity where marginal revenue (MR) is equal to marginal cost (MC) and charge a price, where the demand curve intersects the marginal cost curve. This is the point of allocative efficiency where resources are optimally allocated.

Which of the Following Is (Are) True