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:

Expected Number

An average or most probable value calculated based on statistical analysis or probability theory.

Supply Chain Management

The oversight of materials, information, and finances as they move from supplier to manufacturer to wholesaler to retailer to consumer, aiming to streamline a business’s supply-side activities to maximize customer value and gain a competitive advantage in the marketplace.

Loss Incurred

Refers to a financial deficit that results from a business operation, transaction, or other activities.

Unsold Unit

A product unit that remains unsold after being offered to the market, representing a missed revenue opportunity.