In long-run equilibrium in perfect competition,marginal cost is:
A)greater than price.
B)equal to price.
C)less than price.
D)related to price but not in a predictable way.

Question

Quizplus · Accepted Answer

In long-run equilibrium in perfect competition, firms produce at the point where P = MC in order to maximize profit. Therefore, in equilibrium, price equals marginal cost.

In Long-Run Equilibrium in Perfect Competition,marginal Cost Is