Which of the Following Is True Regarding the Equilibrium Price

question 21

Multiple Choice

Which of the following is true regarding the equilibrium price in perfectly competitive markets in the long run?

• A)It will equal the firm's long- and short-run average costs and also its marginal cost.
• B)It will equal the firm's long- and short-run average costs but not its marginal cost.
• C)It will equal the firm's long-run average costs and also its marginal cost but not its short-run costs.
• D)It will equal the firm's short-run average costs and also its marginal cost but not its long-run costs.

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Definitions:

Market Price

The prevailing market rate at which transactions for assets or services are conducted.

Investment Sold

The act of divesting an asset or security, converting an investment back into cash or its cash equivalent.

Equity Investment Transactions

Financial activities involving the buying and selling of stock or ownership stakes in a company.

Fair Value Method

An accounting approach used to measure and report the actual or estimated market value of an asset or liability at the present time.