The home building industry in Raleigh is perfectly competitive and currently in long-run competitive equilibrium. Which of the following statements is true?
A. The price of homes is equal to the minimum possible average variable cost of production
B. The price of homes is equal to the minimum possible average cost of production
C. The price of homes is equal to the marginal cost of production
D. Both B and C
Answer: D
Microeconomics
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