Final answer:
The statement is false because average total cost and price are determined by different factors and there is no automatic mechanism that ensures they will be equal.
Step-by-step explanation:
The statement that in the long run, the average total cost of each brake pad will equal the price of each brake pad is false. In economic terms, the long-run average total cost reflects the per-unit cost when all inputs are variable and economies of scale have been fully exploited. The price of a brake pad, however, is determined by market conditions including supply and demand, competition, and potential price mark-ups or discounts to achieve certain business objectives. There is no automatic mechanism that ensures that the price will converge with the average total cost.