In the Long- Run Equilibrium in a Perfectly Competitive Market

question 134

Multiple Choice

In the long- run equilibrium in a perfectly competitive market, the firms produce at the _______ possible average total cost and the price equals the _______ possible average total cost.

• A) lowest; highest
• B) lowest; lowest
• C) highest; lowest
• D) highest; highest

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Definitions:

Three Perspectives

A broad term that can refer to examining a subject from three different viewpoints or analytical frameworks.

Probability

The measure of the likelihood that an event will occur.

Standard Normal Table

A mathematical table used in statistics to find probabilities associated with the standard normal distribution, where the mean is 0 and the standard deviation is 1.

Normal Distribution

A bell-shaped frequency distribution curve where most occurrences take place in the middle of the range and taper off symmetrically towards both ends.