Examlex
Explain why average cost is not necessarily rising when marginal cost is rising.
Long-run Equilibrium
A state in which all factors of production and inputs in a market are fully adjusted to the market conditions, allowing for steady-state operation without excess supply or demand.
Perfectly Competitive
A market structure characterized by a large number of small firms, homogeneous products, and no barriers to entry or exit.
Price
The capital needed to purchase a particular good or service.
Long-run Equilibrium
A state in which market supply and demand balance over time, leading to stable prices and full utilization of resources.
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