Consider the perfectly competitive firm in the above figure. At what price will long-run equilibrium occur?
A) 11
B) 12
C) 22
D) 23
Question 2
If marginal cost is less than average variable cost and output increases, average total cost ________ and average variable cost ________.
A) increases; increases
B) decreases; decreases
C) decreases; increases
D) increases; decreases
