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In the Long-Run Equilibrium of a Market with Free Entry

Question 151

Multiple Choice

In the long-run equilibrium of a market with free entry and exit, if all firms have the same cost structure, then


A) marginal cost exceeds average total cost.
B) the price of the good exceeds average total cost.
C) average total cost exceeds the price of the good.
D) firms are operating at their efficient scale.

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