In the long-run equilibrium of a competitive market with identical firms, what are the relationships among price P, marginal cost MC, and average total cost ATC?
a. P MC and P ATC.
b. P MC and P = ATC.
c. P = MC and P ATC.
d. P = MC and P = ATC.

Question

In the long-run equilibrium of a competitive market with identical firms, what are the relationships among price P, marginal cost MC, and average total cost ATC?
a. P > MC and P > ATC.
b. P > MC and P =  ATC.
c. P = MC and P  > ATC.
d. P = MC and P = ATC.

In the long-run equilibrium of a competitive market with identical firms, what are the relationships among price P, marginal cost MC, and average total cost ATC?

a. P > MC and P > ATC.

b. P > MC and P = ATC.

c. P = MC and P > ATC.

d. P = MC and P = ATC.

Unlock all answers

Related textbook solutions

Principles of Economics

Principles of Macroeconomics

Principles of Microeconomics

Weekly leaderboard

In the long-run equilibrium of a competitive market with identical firms, what are the relationships among price P, marginal cost MC, and average total cost ATC? a. P > MC and P > ATC. b. P > MC and P = ATC. c. P = MC and P > ATC. d. P = MC and P = ATC.