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:

Shipping Container

A large, standard-sized metal box used for the transport of goods by sea or land.

Refurbishment

The process of cleaning, decorating, and re-equipping to make something look new or to restore it to good condition.

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The difference between a company's actual revenue and its budgeted or projected revenue over a given period.

Budgeting

The process of creating a plan to spend your money, which involves estimating revenues and expenses over a specified future period.