Which of the following is a true statement about the difference between a price-taker firm and a competitive price-searcher firm in the long run (more than one answer is correct)?Both will sell their products at a price equal to average total cost, but only the price-searcher will produce at minimum average total cost.Both will sell their products at a price equal to marginal cost, and only the competitive price searcher will produce at minimum average total cost.Only the price searcher will sell its product at a price equal to marginal cost.Only the competitive price taker will sell its product at a price equal to marginal cost.Both will sell their products at a price equal to average total cost, but only the price-taker will produce at minimum average total cost.

A price taker firm is the firm which takes the prevailing market price of a service or good as given…

Answered: Which of the following is a true…

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter9: Price Takers And The Competitive Process

Section: Chapter Questions

Problem 16CQ

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Which of the following is a true statement about the difference between a price-taker firm and a competitive price-searcher firm in the long run (more than one answer is correct)?

Both will sell their products at a price equal to average total cost, but only the price-searcher will produce at minimum average total cost.
Both will sell their products at a price equal to marginal cost, and only the competitive price searcher will produce at minimum average total cost.
Only the price searcher will sell its product at a price equal to marginal cost.
Only the competitive price taker will sell its product at a price equal to marginal cost.
Both will sell their products at a price equal to average total cost, but only the price-taker will produce at minimum average total cost.

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