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The following is the set of conditions is necessary for ________ for a perfectly competitive firm: P = SRMC = SRAC = LRAC.
A) short-run shut down
B) long-run profit
C) long-run production with economic losses
D) long-run equilibrium
Long-run Equilibrium
A state in which all aspects of a market, including supply and demand, production costs, and economic resources, are balanced, allowing for consistent economic conditions over time.
Perfectly Competitive
A market structure characterized by many sellers and buyers, homogeneous products, free entry and exit, and perfect information, leading to an optimal distribution of resources.
Conditions
Various factors or circumstances that affect the operation of a market or the outcome of an economic model.
- Illustrate the prerequisites for long-run equilibrium in firms operating under perfect competition.
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Learning Objectives
- Illustrate the prerequisites for long-run equilibrium in firms operating under perfect competition.
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