Consider the Following Statement of Equalities: P = MC =

question 17

Multiple Choice

Consider the following statement of equalities: P = MC = minimum SRATC = minimum LRAC.This statement of equalities best applies to which of the following?

• A)a perfectly competitive firm that is maximizing profits,which will lead other firms to enter this industry
• B)a perfectly competitive firm when the industry is in long-run equilibrium
• C)a perfectly competitive firm that is producing the optimal quantity,such that other firms will exit the industry
• D)a perfectly competitive industry that is in long-run equilibrium
• E)a perfectly competitive industry that is in short-run equilibrium