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Which of the Following Is Not True in a Long-Run P=MCP = M C

Question 51

Multiple Choice

Which of the following is not true in a long-run perfectly competitive equilibrium?


A) P=MCP = M C , where PP is market price and MCM C is the marginal cost of a firm.
B) P=ACP = A C , where PP is market price and ACA C is the average cost of a firm.
C) Qd=nqQ ^ { d } = n q , where qq is the supply of an individual firm, nn is the number of firms in the industry, and QdQ ^ { d } is the market demand for a product.
D) Firms may earn negative profits.

Correct Answer:

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