Market Structures Competition and Regulation Practice Questions | A-Level Economics

Market Structures Competition and Regulation

Question 1 of 30

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In long-run perfect competition with identical firms and no externalities, the statement "industry output is allocatively and productively efficient" is true only if which combined set of equalities holds at the equilibrium output?

Select one option.

\(P = AC\) only
\(P = MC\) and the firm produces at minimum \(AC\)
\(MR = MC\) only
\(P > MC\) and firms earn normal profit
\(P = AVC\) and firms earn supernormal profit

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