Which of the following is true of a perfectly competitive firm in long-run equilibrium?
A) marginal revenue (MR) = marginal cost (MC) = average total cost (ATC)
B) marginal revenue (MR) = marginal cost (MC) = average fixed cost (AFC)
C) marginal cost (MC) = average total cost (ATC) = average fixed cost (AFC)
D) marginal revenue (MR) = marginal cost (MC) > average total cost (ATC)
E) marginal revenue (MR) = marginal cost (MC) > average variable cost (AVC)
Correct Answer:
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