In long-run equilibrium under perfect competition:
A) price will equal minimum average fixed cost.
B) firms will earn economic profits due to the existence of barriers to entry.
C) the demand curve facing individual firms will fall to the level tangent to the minimum average total cost curve.
D) firms will produce at the level of output where marginal revenue exceeds marginal cost by the greatest dollar amount.
Correct Answer:
Verified
Q90: Exhibit 12-5 Q91: A firm receives $10 per unit at Q92: Assume that the equilibrium price in a Q93: If input costs remain the same as Q94: Exhibit 12-5 Q96: Exhibit 12-6 Q97: Firms will continue to enter a competitive Q98: Exhibit 12-6 Q99: Darlene runs a fruit and vegetable stand Q100: Exhibit 12-6 Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
