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Question
In reference to the long-run firm competitive equilibrium diagram, which of the following statements is INCORRECT?
A) In the long run, the firm has no incentive to alter its scale of operations.
B) Because profits must be zero in the long run, the firmʹs short-run average costs (SAC) must equal P at Qe, which occurs at minimum SAC.
C) In the long run, the firm operates where price, marginal revenue, marginal cost, short -run minimum average cost, and long -run minimum average cost all are equal.
D) In the long run, this firm must be part of a constant -cost industry, because its marginal revenue curve is perfectly elastic.
Answer
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