When a Competitive Price-Searcher Market Is in Long-Run Equilibrium, the Firms

question 119

Multiple Choice

When a competitive price-searcher market is in long-run equilibrium, the firms will

• A) earn economic profit.
• B) operate at an output level that minimizes long-run average total cost.
• C) charge a price that is equal to average total cost.
• D) operate at an output level where price is equal to marginal cost.

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Definitions:

Restrictive Endorsement

A limitation placed on a check specifying the conditions under which it can be paid or transferred, often used for security purposes.

Pay To The Order

A phrase written on a financial instrument such as a check, indicating the person or entity to which the money is directed.

Bank

A financial institution licensed to receive deposits and make loans, and may offer various other financial services.

Negotiable

Capable of being discussed and terms arranged; a check is a negotiable instrument drawn against deposited funds to pay a specified amount to a person or business upon demand.