In Long-Run Equilibrium for a Perfectly Competitive Industry, Price Equals

question 239

Multiple Choice

In long-run equilibrium for a perfectly competitive industry, price equals

• A) short-run marginal cost.
• B) short-run average cost.
• C) long-run average cost.
• D) All of the above are correct.

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Definitions:

Total Cost Method

An accounting approach that sums up the direct, indirect, fixed, and variable costs associated with manufacturing a product.

Cost-Plus Approach

A pricing strategy where the selling price is determined by adding a specific markup to a product's cost to ensure profitability.

Markup Percentage

A measure of the difference between the cost of a product and its selling price, expressed as a percentage of the cost.

Markup Percentage

The ratio between the cost of a good or service and its selling price, expressed as a percentage over the cost.