If a Price-Taker Industry Is in Long-Run Equilibrium, the Market

question 216

Multiple Choice

If a price-taker industry is in long-run equilibrium, the market price in the industry will be just sufficient to cover the firm's average

• A) total costs.
• B) fixed costs.
• C) variable costs.
• D) variable costs plus a 10 percent accounting profit.

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Definitions:

Linear Equation

A mathematical equation where every term is a constant or the multiplication of a constant with one variable, resulting in a graph that outlines a straight line.

Solve

Refers to finding the value or values that satisfy an equation or system of equations.

Linear Equation

An algebraic equation in which each term is either a constant or the product of a constant and a single variable, and the graph forms a straight line.

Solve

Finding the value of variables that satisfy a given mathematical equation or inequality.