The Long-Run Equilibrium Condition for Perfect Competition Is

question 160

Multiple Choice

The long-run equilibrium condition for perfect competition is:

• A) P = AVC = MR = MC.
• B) P = ATC = MR = MC.
• C) Q = AVC = MR = MC.
• D) Q = ATC = MR = MC.
• E) TR = ATC = MR = MC.

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Definitions:

Wealth

The total value of all financial assets and tangible possessions owned by an individual or entity, minus any debts.

Von Neumann-Morgenstern Utility Function

A mathematical representation of an individual's preference over a set of alternatives, based on the assumption of expected utility maximization.

Risk Lover

A person or entity that prefers to take risks, often in pursuit of higher rewards, rather than avoiding them.

Probability

A measure of the likelihood of a particular event or outcome occurring, expressed as a number between 0 and 1.