Question:

When a purely competitive firm is in long-run equilibrium, price is equal to:

A.

marginal cost, but may be greater or less than average cost.

B.

minimum average cost, and also to marginal cost.

C.

minimum average cost, but may be greater or less than marginal cost.

D.

marginal revenue, but may be greater or less than both average and marginal cost.

Answer» b. minimum average cost, and also to marginal cost.