Which Is True of a Purely Competitive Firm in Long-Run

question 140

Multiple Choice

Which is true of a purely competitive firm in long-run equilibrium?

• A)Average fixed cost equals price.
• B)Marginal cost equals marginal product.
• C)Price equals marginal cost.
• D)Average variable cost equals marginal cost.

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Definitions:

Financial Statements

Documents that present the financial activities and condition of a business or entity, including the balance sheet, income statement, and cash flow statement.

Chief Operating Officers

High-ranking executives responsible for overseeing the day-to-day administrative and operational functions of a company.

Foreign Corporation

Firm that operates in states where it is not incorporated.

Domestic Corporation

Company that operates in the state where it is incorporated.