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Commerce · Q282

Economics

Graduate and Post Graduate · Commerce · question 282

Q282

When the perfectly competitive firm and industry are in long run equilibrium, then

A.
P = MR = SAC = LAC
B.
D = MR = SMC = LMC
C.
P = MR = Lowest point on the LAC curve
D.
All of the above
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
When the perfectly competitive firm and industry are in long run equilibrium, then P = MR = SAC = LAC,
D = MR = SMC = LMC and,
P = MR = Lowest point on the LAC curve.