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In Long-Run Competitive Equilibrium SRATC = LRATC, Because If SRATC

Question 96

Multiple Choice

In long-run competitive equilibrium SRATC = LRATC, because if SRATC > LRATC (at the quantity of output at which MR = MC) firms would


A) have an incentive to change their plant size to produce their current output.
B) not be covering their total fixed costs.
C) not be covering their total variable costs.
D) a and b
E) b and c

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