Based on the above scenario,is the industry in the long run equilibrium?
A)yes,because all firms are producing at P=MR=MC
B)no,because the price is still greater than the minimum average total cost.
C)cannot answer because need information on MR
D)cannot answer unless we see that the market lets some firms enter and/or some firms exit.

Question

Quizplus · Accepted Answer

In long-run equilibrium, firms produce where price equals the minimum average total cost (ATC). If the price is greater than the minimum ATC, firms are making economic profits, indicating that the industry is not in long-run equilibrium.

Based on the Above Scenario,is the Industry in the Long