Suppose a Competitive Market Consists of Identical Firms

question 92

Multiple Choice

Suppose a competitive market consists of identical firms.The long-run and short-run supply curves will be identical when:

• A)price equals the minimum of 'average total cost' in the short-run
• B)the firms' marginal cost curves are constant (horizontal)
• C)there is free entry and exit in the marketplace
• D)they will never be identical, the short- and long-run supply curves always differ

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