In Long-Run Equilibrium in a Competitive Market, Firms Are Operating

question 19

Multiple Choice

In long-run equilibrium in a competitive market, firms are operating at

• A) the minimum of their average-total-cost curves.
• B) all of these answers are correct.
• C) their efficient scale.
• D) zero economic profit.
• E) the intersection of marginal cost and marginal revenue.

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Definitions:

Dormant Commerce Clause

A restriction on states’ authority that is implied in the commerce clause of the U.S. Constitution: The power given to Congress to enact legislation that affects interstate commerce in effect prohibits a state from passing legislation that improperly burdens interstate commerce.

Interstate Commerce

Interstate Commerce refers to the buying, selling, or moving of goods, services, or money across state borders, regulated by the federal government.

Gun-Free School Zone Act

Federal legislation in the United States that prohibits the unauthorized possession of firearms in designated school zones.

Commerce Clause

A provision in the United States Constitution that grants Congress the power to regulate trade between states, with foreign nations, and among Indian tribes.