A perfectly competitive industry is in a state of long-run equilibrium.Which expression must be TRUE?

Question

Quizplus · Accepted Answer

In a perfectly competitive market in long-run equilibrium, price (P) equals both marginal revenue (MR) and marginal cost (MC), as firms will continue to adjust production until these values are equal. Additionally, in the long run, firms in perfect competition will produce where average total cost (ATC) is minimized. Therefore, P = MR = MC = ATC is the expression that must be true in this scenario.

A Perfectly Competitive Industry Is in a State of Long-Run