Which of the Following Is True When Long-Run Equilibrium Conditions

question 48

Multiple Choice

Which of the following is true when long-run equilibrium conditions are present in price-taker and competitive price-searcher markets?

• A) MR = MC in both price-taker and competitive price-searcher markets
• B) P = ATC in both price-taker and competitive price-searcher markets
• C) P = MC in both price-taker and competitive price-searcher markets
• D) Both a and b, but not c are true.

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Definitions:

Alternatives

Different options or strategies that can be considered or chosen in decision-making processes.

Quantitative Terms

Conditions or parameters that can be measured and quantified, often used in contracts and agreements.

Profit Maximisation

An objective of management to achieve the highest possible profit from operations, usually by increasing revenue and/or reducing costs.

Employee Morale

The overall outlook, attitude, satisfaction, and confidence that employees feel at work, which can significantly impact productivity and retention.