Which of the Following Is Not True in a Long-Run $P = M C$

question 54

Multiple Choice

Which of the following is not true in a long-run perfectly competitive equilibrium?

• A) \(P = M C\) , where P is market price and MC is the marginal cost of a firm.
• B) \(P = A C\) , where P is market price and AC is the average cost of a firm.
• C) \(Q ^ { d } = n q\) , where\(q\) is the supply of an individual firm,
• \(n\)
• is the number of firms in the industry, and Q^d is the market demand for a product.
• D) Firms may earn negative profits.

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