Multiple Choice
The figure given below shows the revenue and cost curves of a perfectly competitive firm.Figure 10.5
MC: Marginal cost curve
MR: Marginal revenue curve.ATC: Average-total-cost curve
AVC: Average-variable-cost curve
-Which of the following statements is true in the context of the long run?
A) All the factors of production are fixed.
B) No new firms enter the market.
C) The producer can vary all the factors of production.
D) The firms earn positive economic profit.
E) Large firms tend to acquire market power.
Correct Answer:

Verified
Correct Answer:
Verified
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