Which of the Following Characterizes Long-Run Equilibrium in Perfect Competition

question 4

Multiple Choice

Which of the following characterizes long-run equilibrium in perfect competition?

• A) P = MC = ATC
• B) P = MC < ATC
• C) P > MC = ATC
• D) P = MC > ATC

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Definitions:

Pinion

A small gear that engages with a larger gear or rack, often used to convert rotational motion to linear motion or vice versa.

Mechanical Advantage

The factor by which a mechanism multiplies the force put into it, enabling the lifting or moving of heavier loads with less effort.

Pitch Diameters

The effective diameter of a screw thread, halfway between the crests and roots, used in measuring and specifying thread sizes.

Diametral Pitches

Diametral pitches refer to the number of teeth per inch of the diameter of a gear, which determines the size of the teeth and the pitch of the gear.