Multiple Choice
Which of the following is not true in a long-run perfectly competitive equilibrium?
A) , where P is market price and MC is the marginal cost of a firm.
B) , where P is market price and AC is the average cost of a firm.
C) , where is the supply of an individual firm,
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:

Verified
Correct Answer:
Verified
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