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A firm under perfect competition in the long-run will be equilibrium when ______. - Economics

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Question

A firm under perfect competition in the long-run will be equilibrium when ______.

Options

  • it earns normal profit only

  • LMC = MR

  • AR = LAC

  • all of these

MCQ
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Solution

A firm under perfect competition in the long-run will be equilibrium when it earns normal profit only, LMC = MR and AR = LAC.

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Chapter 11: Determination of Equilibrium Price and Output Under Perfect Competition - TEST YOURSELF QUESTIONS [Page 199]

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Frank Economics [English] Class 12 ISC
Chapter 11 Determination of Equilibrium Price and Output Under Perfect Competition
TEST YOURSELF QUESTIONS | Q 5. | Page 199
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