Which of the Following Is NOT a Characteristic of Long-Run

question 96

Multiple Choice

Which of the following is NOT a characteristic of long-run equilibrium for a perfectly competitive firm?

• A)Price is greater than long-run average cost.
• B)Price is equal to long-run marginal cost.
• C)Economic profit is zero.
• D)The firm produces the output level at which long-run average cost is at its minimum.

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Definitions:

Equivalent Value

The amount that represents an equal worth or utility between two different items, currencies, or financial instruments, considering various factors.

Rate of Return

The percentage of profit or loss on an investment relative to its cost, indicative of its financial performance over a period.

Equivalent Value

The worth of one item or service in terms of another, indicating how much of one thing is considered equal in value to another.

Rate of Return

The percentage of profit or loss on an investment over a specified period, reflecting the efficiency of investing capital.