When a Perfectly Competitive fiRm Is in Equilibrium in the Long

question 69

Multiple Choice

When a perfectly competitive firm is in equilibrium in the long run, _____.

• A) average cost must be lesser than marginal revenue
• B) average cost must be greater than marginal revenue
• C) average cost must be equal to marginal revenue
• D) marginal revenue must be greater than price

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Definitions:

Probability

This refers to the likelihood of occurrence of an uncertain event, often expressed as a number between 0 and 1.

Narrowest Bell Curve

Describes a distribution with a high peak and steep sides, indicating that the data points cluster closely around the mean, showing low variability.

Large-company Stocks

Equities issued by corporations with a large market capitalization, often considered more stable investments than those of smaller companies.

Treasury Bills

Short-term government securities with maturities of one year or less, sold at a discount from their face value.