Figure 6.3
-Figure 6.3 shows the cost structure of a firm in a perfectly competitive market. The firm will stay in the market in the long run only if the market price is greater than or equal to:

Question

Quizplus · Accepted Answer

In the long run, a firm in a perfectly competitive market will stay in the market if the market price is at least equal to the average total cost (ATC). The ATC is $10, so the firm will stay if the price is $10 or higher.

Figure 6.3 -Figure 6.3 Shows the Cost Structure of a Firm in Firm