Which of the Following Is Not True in a Long-Run $P = M C$

question 51

Multiple Choice

Which of the following is not true in a long-run perfectly competitive equilibrium?

• A) \(P = M C\), where \(P\) is market price and \(M C\) is the marginal cost of a firm.
• B) \(P = A C\), where \(P\) is market price and \(A C\) is the average cost of a firm.
• C) \(Q ^ { d } = n q\), where \(q\) is the supply of an individual firm, \(n\) is the number of firms in the industry, and \(Q ^ { d }\) is the market demand for a product.
• D) Firms may earn negative profits.

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