Suppose a perfectly competitive firm faces the following situation: P = $9, outp

Question

Suppose a perfectly competitive firm faces the following situation: P = $9, output = 4,000, ATC = $8, AVC = $6, and MC = $9. How can someone determine whether this firm's market is in a long-run equilibrium? It is not in equilibrium because MC = AVC = P = ATC at long-run equilibrium. It is in equilibrium because MC = P = AVC = ATC at long-run equilibrium. It is in equilibrium because MC = P = MR = SRATC at long-run equilibrium. It is not in equilibrium because MC = ATC = MR = P at long-run equilibrium. Suppose a perfectly competitive firm faces the following situation: P = $9, output = 4,000, ATC = $8, AVC = $6, and MC = $9. How can someone determine whether this firm's market is allocatively efficient? The firm is not allocatively efficient because P is not equal to MC. The firm is allocatively efficient because P = ATC. The firm is allocatively efficient because P = MC. The firm is not allocatively efficient because ATC is not equal to MC. Suppose a perfectly competitive firm is in the following situation: P = $8, output = 4,000, ATC = $8, AVC = $6, and MC = $8. Which statement accurately describes the firm's and the market's situation? The firm incurs a normal profit; the market is in a long-run equilibrium. The firm incurs economic profits; the market is in a long-run equilibrium. The firm incurs losses; the market is in a short-run equilibrium. The firm incurs economic profits; the market is in a short-run equilibrium. Suppose a perfectly competitive firm is in the following situation: P = $9, output = 4,000, ATC = $8, AVC = $6, and MC = $9. Which statement accurately describes the firm's and the market's situation? The firm incurs economic profits; the market is in a long-run equilibrium. The firm incurs economic profits; the market is in a short-run equilibrium. The firm incurs a normal profit; the market is in a long-run equilibrium. The firm incurs losses; the market is in a short-run equilibrium. Suppose a perfectly competitive firm faces the following situation: P = $9, output = 4,000, ATC = $8, AVC = $6, and MC = $9. How can someone determine whether this firm's market is in a long-run equilibrium? It is not in equilibrium because MC = AVC = P = ATC at long-run equilibrium. It is in equilibrium because MC = P = AVC = ATC at long-run equilibrium. It is in equilibrium because MC = P = MR = SRATC at long-run equilibrium. It is not in equilibrium because MC = ATC = MR = P at long-run equilibrium.

Explanation / Answer

Q1

Answer

It is not in equilibrium because MC = ATC = MR = P at long-run equilibrium.

The firm does not have all this equal so the fir is not in long run.

Q2

Answer

The firm is allocative efficient because P = MC

The firm is allocative efficient because it has MC=P

Q3

Answer

no option is correct

The firm incurs a normal profit, but the market is in a short run equilibrium because AVC and ATC are different.

Q4

The firm incurs economic profits; the market is in a short-run equilibrium.

The firm have P>ATC so the firm is making the profit at it is in short run.

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