The Long-Run Equilibrium Condition for Perfect Competition Is

question 160

Multiple Choice

The long-run equilibrium condition for perfect competition is:

• A) P = AVC = MR = MC.
• B) P = ATC = MR = MC.
• C) Q = AVC = MR = MC.
• D) Q = ATC = MR = MC.
• E) TR = ATC = MR = MC.

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Definitions:

Total Materials Costs

The combined cost of direct materials and any indirect materials used in the manufacturing process.

Equivalent Units

A term used in cost accounting to express the amount of work completed in terms of fully finished units.

Beginning Work in Process

The value of goods that are in the process of being manufactured at the start of an accounting period, included in the calculation of cost of goods manufactured.

Ending Work in Process

The total value of goods that are in the production process but are not yet complete by the end of an accounting period.