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Which of the following statements is not correct?
A) In a long-run equilibrium, marginal firms make zero economic profit.
B) To maximize profit, firms should produce at a level of output where price equals average variable cost.
C) The amount of gold in the world is limited. Therefore, the gold jewelry market probably has a long-run supply curve that is upward sloping.
D) Long-run supply curves are typically more elastic than short-run supply curves.

Respuesta :

Karabo99

Answer:

B) To maximize profit, firms should produce at a level of output where price equals average variable cost

Explanation:

Firms maximize their profit by equating Marginal revenue with The Marginal cost. So, since for perfectly competitive firms, the price equals the Marginal revenue, for these firms profit is maximized by equating Price with Marginal cost not the  average variable cost.

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