Which of the Following Is a Key Characteristic of the Long-Run

question 52

Multiple Choice

Which of the following is a key characteristic of the long-run competitive equilibrium that distinguishes it from the short-run competitive equilibrium?

• A) Free entry to reduce short-run profits, or free exit to reduce short-run losses.
• B) Economic profits are positive, but cannot be negative.
• C) Marginal revenue is greater than marginal cost.
• D) Average revenue is less than average cost.