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:

Omnivores

Organisms that obtain energy and nutrients by consuming a diet made up of both plant and animal products.

Dentition

The arrangement or condition of the teeth in a particular species or individual.

Cro-Magnon

Common name for the first fossils to be designated Homo sapiens.

Spears

Long-shafted weapons with a pointed tip, historically used for hunting and combat by various cultures around the world.