When a Competitive Price-Taker Market Is in Long-Run Equilibrium

question 223

Multiple Choice

When a competitive price-taker market is in long-run equilibrium

• A) the firms in the market will earn zero economic profit.
• B) the average total cost of the firms in the market will be minimized.
• C) every unit of the relevant good that is valued more than its opportunity costs will be produced and sold.
• D) all of the above are correct.

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Definitions:

Financial Statements

Formal records of the financial activities and position of a business, individual, or other entity.

Raw Materials

Materials in their natural, unprocessed state used as inputs in production processes.

FOB Destination

A shipping term where the seller bears the shipping costs and retains ownership of the goods until they are delivered and accepted by the purchaser.

Consignment Stock

Inventory that is in the possession of the customer but still legally owned by the supplier until sold.