Here's the full question;
The firm has total fixed costs of $40 and a constant marginal cost of $2 per unit. We can conclude that
a. firms will exit this market.
b. firms will enter this market.
c. this firm is operating at its efficient scale.
d. this market is in long-run equilibrium
Answer:
d. this market is in long-run equilibrium
Explanation:
Long-run equilibrium occurs when a firm records a marginal revenue that is equal to its marginal costs.
In the firm above we noticed that the firm has total fixed costs of $40 and a constant marginal cost of $2 per unit, by multiplying the marginal cost of $2 by 20 units (20*2) as found in the attached image, we arrived at a value which equals the total fixed cost.
