Question

In a long-run equilibrium, A. only a perfectly competitive firm operates at its efficient scale. B. both a perfectly competitive firm and a monopolistically competitive firm operate at their efficient scale of production. C. only a monopolistically competitive firm operates at its efficient scale.

Answer 1

Answer:

In a long-run equilibrium - only a perfectly competitive firm operates at its efficient scale - option A is the correct answer.

Explanation:

In the long-run equilibrium, only a perfectly competitive firm that operates at its efficient scale and a monopolistically competitive firm sets off with overabundant capacity.

Therefore, in a long-run equilibrium - only a perfectly competitive firm operates at its efficient scale - option A is the correct answer.