Which of the following statements is not correct?
A)In a long-run equilibrium, marginal firms make zero economic profit.
B)To maximize profit, firms should produce at a level of output where price equals average variable cost.
C)The amount of gold in the world is limited. Therefore, the gold jewelry market probably has a long-run supply curve that is upward sloping.
D)Long-run supply curves are typically more elastic than short-run supply curves.

Question

Quizplus · Accepted Answer

To maximize profit, firms should produce at a level of output where price equals marginal cost, not average variable cost.

Which of the Following Statements Is Not Correct