Long-run equilibrium for a perfectly competitive firm occurs when:
A) Price (P) = Marginal cost (MC) = Short-run average total cost (SRATC) = Long-run average cost (LRAC) .
B) Marginal cost (MC) = Marginal revenue (MR) = Average fixed cost (AFC) = Short-run average total cost SRATC.
C) Marginal cost (MC) = Marginal revenue (MR) = Price (P) > Long-run average cost (LRAC) .
D) Price (P) = Marginal revenue (MR) = Long-run average variable cost (LRAVC) = Long-run average cost (LRATC) .
E) Marginal cost (MC) = Marginal revenue (MR) = Average fixed cost (AFC) = Long-run average cost (LRAC) .
Correct Answer:
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