In the Long Run Equilibrium

question 55

Multiple Choice

In the long run equilibrium:

• A)price is equal to the minimum average cost.
• B)price is greater than the minimum average variable cost.
• C)price is equal to the minimum average fixed cost.
• D)price is greater that the minimum average cost.

---

Definitions:

Indirect Costs

Expenses not directly associated with the production of goods or services, such as administration and rental costs.

Allocated Costs

Allocated costs refer to the systematic distribution of fixed and variable expenses to various departments or sectors of a business.

Responsibility Centers

Parts or segments of an organization for which managers have authority and accountability for performance, often categorized as cost, profit, or investment centers.

Revenue Generation

The process through which a business produces income from its activities, typically through sales of goods or services.