The graph illustrates a firm in long-run equilibrium.Which of the following statements is true?
A) The firm is making a normal profit, output is q*; D = MC, and MR = LRATC at q*.
B) The firm is making a loss, output is q*; D = MC, and MR = LRATC.
C) The firm is making a normal profit, output is q*; D = LRATC, and MR = MC at q*.
D) The firm is making a loss, output is q*; D = LRATC, and MR = MC at q*.

Question

The graph illustrates a firm in long-run equilibrium.Which of the following statements is true? 
A) The firm is making a normal profit, output is q*; D = MC, and MR = LRATC at q*. 
B) The firm is making a loss, output is q*; D = MC, and MR = LRATC. 
C) The firm is making a normal profit, output is q*; D = LRATC, and MR = MC at q*. 
D) The firm is making a loss, output is q*; D = LRATC, and MR = MC at q*.

Quizplus · Accepted Answer

The Answer of The graph illustrates a firm in long-run equilibrium.Which of the following statements is true? 
A) The firm is making a normal profit, output is q*; D = MC, and MR = LRATC at q*. 
B) The firm is making a loss, output is q*; D = MC, and MR = LRATC. 
C) The firm is making a normal profit, output is q*; D = LRATC, and MR = MC at q*. 
D) The firm is making a loss, output is q*; D = LRATC, and MR = MC at q*.

The Graph Illustrates a Firm in Long-Run Equilibrium