Refer to the below graph of the market for wheat. The government adopts a price support program for wheat, and supports the wheat price at P2. The area Q1ABQ2 represents the:

A fair-returns price is a price set at:

A) marginal cost. B) average fixed cost. C) average total cost. D) average variable cost.

The long-run equilibrium condition for firms that operate in perfect competition is

a. P = AVC = MR = MC b. P = ATC = MR = MC c. Q = AVC = MR = MC d. Q = ATC = MR = MC e. TR = ATC = MR = MC