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:

LUMO

The Lowest Unoccupied Molecular Orbital is the orbital with the lowest energy level capable of accepting an electron.

1,3-Butadiene

An organic compound that is a simple conjugated diene with the formula C4H6, known for its role in the production of synthetic rubber.

Allylic Carbons

Atoms of carbon that are positioned next to a carbon-carbon double bond in a molecule, often exhibiting unique reactivity due to their position.

Cholesterol

A waxy substance found in the lipids (fats) in the blood, essential for the creation of vitamin D, steroid hormones, and bile acids, but high levels can lead to health risks.