For a firm in long-run equilibrium producing anallocatively efficient level of output where marginal cost is equal to demand, which of the following does not apply?
A. Price is sufficient to cover the opportunity cost.
B. Profit of the firm becomes zero.
C. Price is sufficient to covercosts.
D. This situation also satisfies the consumers.
Answer:B
For a firm in long-run equilibrium producing anallocatively efficient level of output where marginal cost is equal to demand, which of the following does not apply?
A. Price is sufficient to cover the opportunity cost. B. Profit of the firm becomes zero. C. Price is sufficient to covercosts. D. This situation also satisfies the consumers.