In the Long-Run Equilibrium of a Competitive Market, the Number

question 175

Multiple Choice

In the long-run equilibrium of a competitive market, the number of firms in the market adjusts until the market demand is satisfied at a price equal to the minimum of

• A)average fixed cost for the marginal firm.
• B)marginal cost of the marginal firm.
• C)average total cost of the marginal firm.
• D)average variable cost of the marginal firm.

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Definitions:

Machining

The process of shaping, cutting, or altering a material using machines or tools, often used in the manufacturing of parts or components.

Activity-based Costing

Activity-based costing (ABC) is a method of assigning overhead and indirect costs to specific products or activities based on their usage.

Machining

The process of cutting, shaping, or removing material from a workpiece using machines or tools, often for manufacturing purposes.

Activity-based Costing

A costing method that assigns overhead and indirect costs to specific activities, providing more accurate product costing.