In Long-Run Equilibrium, Which of the Following Is Not Equal

question 72

Multiple Choice

In long-run equilibrium, which of the following is not equal to price for a perfectly competitive firm?

• A) short-run average variable cost
• B) long-run average total cost
• C) short-run marginal cost
• D) short-run average total cost

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Definitions:

Minimum AVC

The lowest point on the average variable cost curve, indicating the most efficient scale of production for minimizing variable costs per unit of output.

Perfectly Competitive

A market structure characterized by a large number of small firms, a homogeneous product, perfect information, and easy market entry and exit, ensuring no individual firm can influence the market price.

ATC

Average Total Cost, which refers to the total cost of production divided by the quantity of output produced, encompassing both fixed and variable costs.

Purely Competitive

Describes a market structure where many firms sell identical products, and no single firm can influence the market price.