when a firm in perfect competition is maximizing its profits and produces that l

Question

when a firm in perfect competition is maximizing its profits and produces that level of output where, marginal revenue, marginal cost, average total cost, long-run marginal cost, and long-run average total cost are all equal, the firm

A. earns a positive economic profit, and this is greater than the return required to keep the firm in business

B earns a positive economic profit that can be continued in the long run

C. is in a long-run equilibrium and is just breaking even

D. incurs a loss and will shut down in the long run

E. serves to signal other competing firms to enter the market

Explanation / Answer

C. is in a long-run equilibrium and is just breaking even

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