### Long-Run Equilibrium in a Perfectly Competitive MarketIn the long-run equilibrium of a perfectly competitive market with identical firms, which of the following will be true?1. **There will be no incentive for firms to enter or exit the market.**2. **Every firm will produce the quantity of output at which its average total costs are minimized.**3. **Every firm will earn 0 economic profit.**4. **All of the other choices will be true.**5. **Every firm's marginal cost will equal its marginal revenue.**

ong-run equilibrium of a perfectly competitive market with identical firms, which of the ng will be true? e will be no incentive for firms to enter or exit the market. y firm will produce the quantity of output at which its average total costs are minimized. y firm will earn O economic profit. f the other choices will be true. y firm's marginal cost will equal its marginal revenue.

ong-run equilibrium of a perfectly competitive market with identical firms, which of the ng will be true? e will be no incentive for firms to enter or exit the market. y firm will produce the quantity of output at which its average total costs are minimized. y firm will earn O economic profit. f the other choices will be true. y firm's marginal cost will equal its marginal revenue.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The figure is not finished but how will you draw the long run equilbirum at the price of $100 on this?
t of 35 45 40 30 25 255 15 20 10 5 MC, AC MC AC 9 0 100 200 300 400 500 The graph shows average and marginal cost curves for a typical firm in a perfectly competitive industry in LONG-RUN equilibrium. The long-run equilibrium price of the product is $ In long-run equilibrium the firm will produce units. In long-run equilibrium the firm will earn $ economic profit.
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