If there is a positive level of output at which a firm’s profit is maximised in the long run, three conditions must hold at that output level. Which of the following is not such condition?

LRMC is decreasing

The correct answer is Option 1: LRMC is decreasing

If there is a positive level of output at which a firm’s profit is maximised in the long run, three conditions must hold at that output level

(i) p = LRMC

(ii) LRMC is non-decreasing

(iii) p ≥ LRAC.