If All Firms Have the Same Costs of Production, Then

question 55

Multiple Choice

If all firms have the same costs of production, then in long-run equilibrium,

• A)price exceeds average total cost for all firms.
• B)price exceeds marginal cost for all firms.
• C)some firms may earn positive economic profits.
• D)all firms have zero economic profits and just cover their opportunity costs.

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Definitions:

Leydig Cells

Leydig cells, found in the testes, are responsible for the production of testosterone, a key hormone in the development of male secondary sexual characteristics.

Sustentacular Cells

Sustentacular cells, also known as supporting cells, provide physical support and nourishment to the spermatogenic cells within the seminiferous tubules of the testis.

Luteinizing Hormone

A hormone produced by the anterior pituitary gland that triggers ovulation in females and stimulates testosterone production in males.

Testosterone Production

The synthesis of the primary male sex hormone, testosterone, primarily in the testes, which influences male physical features and reproduction.