Title: In reference to the long-run firm competitive equilibrium diagram, which of the following statements ...
Post by: spruckj on Mar 3, 2019
In reference to the long-run firm competitive equilibrium diagram, which of the following statements is INCORRECT?
• In the long run, the firm operates where price, marginal revenue, marginal cost, short-run minimum average cost, and long-run minimum average cost all are equal.
• In the long run, the firm has no incentive to alter its scale of operations.
• Because profits must be zero in the long run, the firm's short-run average costs (SAC) must equal P at Qe, which occurs at minimum SAC.
• In the long run, this firm must be part of a constant-cost industry, because its marginal revenue curve is perfectly elastic.
• In the long run, the firm operates where price, marginal revenue, marginal cost, short-run minimum average cost, and long-run minimum average cost all are equal.
• In the long run, the firm has no incentive to alter its scale of operations.
• Because profits must be zero in the long run, the firm's short-run average costs (SAC) must equal P at Qe, which occurs at minimum SAC.
• In the long run, this firm must be part of a constant-cost industry, because its marginal revenue curve is perfectly elastic.
Title: In reference to the long-run firm competitive equilibrium diagram, which of the following statements ...
Post by: ShaeTime3 on Mar 3, 2019
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Title: In reference to the long-run firm competitive equilibrium diagram, which of the following statements ...
Post by: spruckj on Mar 3, 2019
I appreciate what you did here, answered it correctly :D