When price equals marginal cost
A) firms make zero profits.
B) firms make positive profits.
C) the industry is in long-run equilibrium.
D) the marginal benefits of consuming an extra unit of the good exactly equals the marginal cost to society of producing the good.
Answer: D
You might also like to view...
According to the economic analysis of democracy, citizens do not acquire sufficient information to vote intelligently because
A) money controls the media. B) private concerns matter more to them than public affairs. C) they are apathetic about government. D) they know their vote doesn't really matter. E) the country is a republic, not a democracy.
Which of the following is not an option for a perfectly competitive firm that suffers short-run losses?
A) reducing the use of variable factors B) shutting down C) raising price D) reducing production