Suppose a Perfectly Competitive Firm Faces the Following Situation: P

question 62

Multiple Choice

Suppose a perfectly competitive firm faces the following situation: P = $9; output = 4,000; ATC = $8; AVC = $6; and MC = $9. Is this firm's industry in a long-run equilibrium?

• A) Yes, it is in a long-run equilibrium because MC = P = MR = SRATC at long-run equilibrium.
• B) Yes, it is in a long-run equilibrium because MC = P > ATC > AVC at long-run equilibrium.
• C) No, it is not in a long-run equilibrium because MC = P = ATC = AVC at long-run equilibrium.
• D) No, it is not in a long-run in equilibrium because MC = P = MR = SRATC at long-run equilibrium.

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Definitions:

Opaque

Describes a material or substance that is not transparent; light cannot pass through it.

Structural Features

The characteristics or components that make up the physical and architectural design of a structure or organism.

Septum Pellucidum

A thin, transparent membrane separating the lateral ventricles of the brain, involved in the circulation of cerebrospinal fluid.

Lateral Ventricles

Cavities in the brain that produce and circulate cerebrospinal fluid, playing a crucial role in cushioning and supporting the brain.