Respuesta :

If the short-run equilibrium output equals the full employment output, an economy is said to be in long-run equilibrium.

What is marginal cost?

  • As production capacity changes, so may the marginal costs of production.

  • If, for example, increasing production from 200 to 201 units per day necessitates the purchase of additional equipment by a small business, the marginal cost of production may be very high.

  • This expense, on the other hand, could be significantly lower if the company considers increasing from 150 to 151 units using existing equipment.

What is marginal revenue?

  • To calculate the marginal revenue, divide the change in total revenue by the change in quantity.

  • The marginal revenue (MR) function is the first derivative of the total revenue (TR) function with respect to the quantity.

In a competitive industry with identical firms, long-run equilibrium is characterized by,

A.P = AC, B.P = MC and C.MR = MC.

Here, MC = Marginal Cost

AC =  Average Cost

AP =  Average Product

BP = Base Product

C.MR = Cost of Marginal Revenue

To know more about long-run equilibrium, refer to:

https://brainly.com/question/6275304

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