When a Purely Competitive Industry Is in Long-Run Equilibrium, Which

question 63

Multiple Choice

When a purely competitive industry is in long-run equilibrium, which statement is true?

• A)Average total cost is less than marginal cost.
• B)Price and average total cost are equal.
• C)Marginal cost is at its maximum level.
• D)Marginal revenue is greater than price.

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Definitions:

Net Earnings

The amount of money left after all deductions, including taxes and operating expenses, have been subtracted from total income.

Standard Mileage Rate

A set rate per mile that taxpayers can use to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes.

Vehicle Expenses

Costs incurred from the use of a vehicle for business purposes, including gas, repairs, and insurance, which may be deductible.

Leaders

Individuals who guide, influence, or command a group, organization, or country.