For a perfectly competitive firm at its long-run equilibrium,
A) P = MR = MC = AC.
B) P = MR > MC.
C) accounting profit must be zero.
D) there are no opportunity costs to be concerned with.
Which of the following is NOT a characteristic of a perfectly competitive long-run equilibrium?
A) Firms are earning zero profits.
B) Price equals marginal cost.
C) Price equals long-run minimum average cost.
D) Firms are producing on the downward sloping portions of their short-run average cost curves.
If a perfectly competitive industry is in long-run equilibrium, then
A) price equals average cost.
B) price is greater than average cost and equal to marginal cost.
C) all firms earn the same accounting profits.
D) marginal cost is less than average cost.
When a perfectly competitive firm is in long-run equilibrium, economic profits
A) are positive.
B) are zero.
C) are negative.
D) may be positive, zero or negative depending upon costs.