In Both Price-Taker and Competitive Price-Searcher Markets, the Long-Run Market

question 227

Multiple Choice

In both price-taker and competitive price-searcher markets, the long-run market price of a good will be equal to the

• A) average total cost of producing the good.
• B) average variable cost of producing the good.
• C) average fixed cost of producing the good plus a normal return on that cost.
• D) marginal revenue derived from the sale of an additional unit of the good.

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Definitions:

Equilibrium

A state in which opposing forces or influences are balanced, often used in chemical contexts to describe reactions.

Aerobic Respiration

The process by which cells use oxygen to break down glucose and produce ATP, involving the Krebs cycle and electron transport chain.

Pyruvate

An important organic acid in biochemistry, serving as an end product of glycolysis and a substrate for the citric acid cycle.

Pyruvate Ion

The ionized form of pyruvic acid, an important intermediate in several metabolic pathways, including glycolysis.