If All Firms Have the Same Costs of Production, Then

question 55

Multiple Choice

If all firms have the same costs of production, then in long-run equilibrium,

• A)price exceeds average total cost for all firms.
• B)price exceeds marginal cost for all firms.
• C)some firms may earn positive economic profits.
• D)all firms have zero economic profits and just cover their opportunity costs.

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Definitions:

Collateralized

The provision of an asset or property as security for the repayment of a loan, reducing the risk for the lender.

Business Loan

A loan specifically intended for business purposes, helping companies finance operations, equipment, expansion, or other business needs.

Lender

An individual, financial institution, or entity that provides funds to another with the expectation that the funds will be repaid, typically with interest.

Shareholders Wealth

The total value of an individual's or entity's ownership stake in a company, typically measured by stock price and dividends.