When a Purely Competitive Firm Is in Long-Run Equilibrium, Price

question 37

Multiple Choice

When a purely competitive firm is in long-run equilibrium, price is equal to

• A)marginal cost but may be greater or less than average cost.
• B)minimum average total cost and also to marginal cost.
• C)minimum average cost but may be greater or less than marginal cost.
• D)marginal revenue but may be greater or less than both average and marginal cost.

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Definitions:

Span of Control

The number of subordinates directly reportable to a supervisor, indicating how broadly or narrowly a manager oversees direct reports.

Hierarchical Arrangement

A system or organization where elements are ranked or ordered above one another in terms of authority or importance.

One Leader

A situation or system where a single person holds the leadership role.

Accountability

involves the obligation of an individual or organization to account for its activities, accept responsibility for them, and disclose the results in a transparent manner.