In the long-run equilibrium in a perfectly competitive market, the firms produce at the ________ possible average total cost and the price equals the ________ possible average total cost.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, firms produce at the lowest possible average total cost in the long-run equilibrium, and the price equals this lowest possible average total cost.

In the Long-Run Equilibrium in a Perfectly Competitive Market, the Firms