Which of the following statements are false regarding price and output determination under perfect competition?
(A) A firm is a price taker
(B) In the long run. a firm is in equilibrium when its AR = MR = LAC = LMC
(C) A firm is in equilibrium in the short run only when its AC = AR = MR = MC
(D) A firm reaches its shut-down point when price goes below its AC
(E) A firm fixes the price of its products when AR = MR
Choose the most appropriate answer from the options given below:
1
(A), (B), (C) Only
2
(C), (D), (E) Only
3
(B), (C), (D) Only
4
(A), (E) Only