When a Firm in a Price-Taker Industry Is in Long-Run

question 7

Multiple Choice

When a firm in a price-taker industry is in long-run equilibrium, the market price equals

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

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