A Long-Run Equilibrium in an Industry Exists When

question 116

Multiple Choice

A long-run equilibrium in an industry exists when

• A)cost per unit is at its lowest possible level.
• B)there is only one firm in the industry.
• C)the size of the market remains constant.
• D)price equals cost per unit.
• E)price equals marginal cost.

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Definitions:

Mechanical Action

The physical movement or force applied by machinery or mechanical components to perform a function.

Vehicle Brake System

A mechanism in a vehicle that enables it to slow down or come to a complete stop.

Variance

A statistical measurement of the dispersion between numbers in a data set, indicating how much the numbers differ from each other and from the mean.

Squared Deviation

The squared difference between each data point and the mean, used in statistical analysis to measure variance.