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

question 42

Multiple Choice

In long-run equilibrium for a perfectly competitive firm, price equals which of the following?

• A) Economies of scale.
• B) Minimum short-run average total cost.
• C) The sum of each short-run marginal cost curve.
• D) All of these.

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Definitions:

Cash Flows

This refers to the net amount of cash being transferred into and out of a business, especially in the context of operating, investing, and financing activities.

Financial Statement

A written record that conveys the business activities and financial performance of a company, commonly including balance sheet, income statement, and cash flow statement.

Dividends Declared

This is the amount of earnings a company's board of directors decides to distribute to shareholders in the form of dividends.

Income Tax Expense

The amount of expense that a company reflects on its income statement due to federal, state, and foreign income taxes.