In a competitive industry with identical firms,long-run equilibrium is characterized by:
A) P = AC.
B) P = MC.
C) MR = MC.
D) All of the statements associated with this question are correct.

Question

Quizplus · Accepted Answer

In a competitive industry with identical firms, long-run equilibrium is characterized by all of the given conditions: P = AC (firms earn zero economic profit), P = MC (firms produce where price equals marginal cost), and MR = MC (firms maximize profit where marginal revenue equals marginal cost).

In a Competitive Industry with Identical Firms,long-Run Equilibrium Is Characterized