long-run perfectly competitive equilibrium,economic efficiency is achieved because

Question

Quizplus · Accepted Answer

In the long-run perfectly competitive equilibrium, economic efficiency is achieved when price equals minimum long-run average cost for every firm in the industry (choice C) because it ensures that resources are being allocated efficiently and firms are producing at the lowest possible cost. Additionally, price equals long-run marginal cost for every firm in the industry (choice A) because firms are operating where marginal cost equals average total cost, which is at the lowest point of the long-run average cost curve. Therefore, choices A and C are both correct.

Long-Run Perfectly Competitive Equilibrium,economic Efficiency Is Achieved Because