Answer to Question #262584 in Economics for insh

Question

Which of the following occurs in the long-run equilibrium under perfect competition?

Question 2 options:

Firms make economic profit

Price exceeds marginal revenue

Average cost equals marginal cost

Firms makes zero accounting profit but negative economic profit

Answer 1

In the long-run equilibrium under perfect competition average cost equals marginal cost (ATC = MC).

So, the correct answer is 3.