If the Donut Industry Is Perfectly Competitive and Is in Long-Run

question 186

Multiple Choice

If the donut industry is perfectly competitive and is in long-run equilibrium, then the price of a donut

• A) is greater than marginal cost.
• B) is greater than short-run average cost.
• C) is greater than long-run average cost.
• D) equals long-run average cost.

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Definitions:

Activity P

A specific task or action within a project or process that is identified by the letter 'P.'

Net Revenue

The amount of money a company receives from its activities after subtracting the cost of returns, allowances, and discounts.

Total Profit

The total amount of money a company earns after subtracting the costs associated with producing and selling its products or services.