In the long run,all of the firms in a perfectly competitive industry will:

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In the long run, firms in a perfectly competitive industry will produce at the output level at which average total cost equals marginal cost because of the free entry and exit of firms in the industry. This means that firms cannot earn an economic profit greater than zero in the long run. If price is greater than average total cost, new firms will enter the industry, increasing supply and driving down prices until they are equal to average total cost. If price is less than average total cost, firms will exit the industry, decreasing supply and driving up prices until they are equal to average total cost.

In the Long Run,all of the Firms in a Perfectly