In long-run equilibrium in a perfectly competitive market,all firms will be operating at their lowest possible average total cost.

Question

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In a perfectly competitive market, firms must produce at their minimum efficient scale (MES) in order to compete with other firms. This means that they will be producing at the lowest possible average total cost, allowing them to earn normal profits in the long run. If they were producing at a higher cost, they would not be able to compete and would be driven out of the market. Therefore, in long-run equilibrium, all firms in a perfectly competitive market will be operating at their lowest possible average total cost.

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