In the long run equilibrium of a competitive market with identical firms, what is the relationship between price ( P ), marginal cost ( MC ), and average total cost ( ATC )? if P > MC and P > ATC. P > MC and P = ATC.

In the long run equilibrium of a competitive market with identical firms, what is the relationship between price ( P ), marginal cost ( MC ), and average total cost ( ATC )? if P > MC and P > ATC. P > MC and P = ATC.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 5CQQ

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Question

) In the long run equilibrium of a competitive market with identical firms, what is the relationship between price ( P ), marginal cost ( MC ), and average total cost ( ATC )? if

P > MC and P > ATC.
P > MC and P = ATC.

Definition Definition Total cost of producing a certain quantity of a good, divided by the quantity produced. It is the sum of all costs (fixed and variable) required to produce one unit of output.

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