Question

Which of the following would you not associate with perfect competition in the long-run? a. Constant marginal revenue b. Equating price and marginal cost C. Productive efficiency d. Falling average revenue​

Answer 1

I’ll go with Option B

Answer 2

The associate with perfect competition in the long run as Equating price and marginal cost.

Explanation:

• A perfectly competitive firm has only one major decision to make namely, what quantity to produce.
• To understand why this is so, consider a different way of writing out the basic definition of profit.
• A perfectly competitive firm can sell as large a quantity as it wishes, as long as it accepts the prevailing market price.
• Total revenue is going to increase as the firm sells more, depending on the price of the product and the number of units sold.
• If you increase the number of units sold at a given price, then total revenue will increase. If the price of the product increases for every unit sold, then total revenue also increases.