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

Question 54

Multiple Choice

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


A) P=MCP = M C , where P is market price and MC is the marginal cost of a firm.
B) P=ACP = A C , where P is market price and AC 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 Qd is the market demand for a product.
D) Firms may earn negative profits.

Correct Answer:

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