If All Firms Have the Same Costs of Production, Then

question 55

Multiple Choice

If all firms have the same costs of production, then in long-run equilibrium,

• A)price exceeds average total cost for all firms.
• B)price exceeds marginal cost for all firms.
• C)some firms may earn positive economic profits.
• D)all firms have zero economic profits and just cover their opportunity costs.

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Definitions:

Protein

Macromolecule consisting of long sequences of amino acids linked together by peptide bonds.

Fluid Compartments

Divisions within the body where bodily fluids are contained, including intracellular, extracellular, and plasma fluids.

Cytoplasm

Protoplasm of the cell surrounding the nucleus.

Plasma

The liquid component of blood, in which the blood cells are suspended, consisting mainly of water and proteins.