Question 1 Consider the following statement of equalities: P = MC = minimum SRATC = minimum LRAC. This statement of equalities best applies to which of the following? O a perfectly competitive industry that is in short-run equilibrium O a perfectly competitive firm that is maximizing profits, which will lead other firms to enter this industry O a perfectly competitive firm when the industry is in long-run equilibrium O a perfectly competitive firm that is producing the optimal quantity, such that other firms will exit the industry O a perfectly competitive industry that is in long-run equilibrium
Question 1 Consider the following statement of equalities: P = MC = minimum SRATC = minimum LRAC. This statement of equalities best applies to which of the following? O a perfectly competitive industry that is in short-run equilibrium O a perfectly competitive firm that is maximizing profits, which will lead other firms to enter this industry O a perfectly competitive firm when the industry is in long-run equilibrium O a perfectly competitive firm that is producing the optimal quantity, such that other firms will exit the industry O a perfectly competitive industry that is in long-run equilibrium
Chapter12: The Partial Equilibrium Competitive Model
Section: Chapter Questions
Problem 12.4P
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Transcribed Image Text:Question 1
Consider the following statement of equalities: P = MC = minimum SRATC = minimum LRAC. This statement of equalities best applies to which of the following?
a perfectly competitive industry that is in short-run equilibrium
a perfectly competitive firm that is maximizing profits, which will lead other firms to enter this industry
a perfectly competitive firm when the industry is in long-run equilibrium
a perfectly competitive firm that is producing the optimal quantity, such that other firms will exit the industry
a perfectly competitive industry that is in long-run equilibrium
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