Which of the following is consistent with long-run equilibrium for a perfectly competitive market?

Question

Quizplus · Accepted Answer

In long-run equilibrium for a perfectly competitive market, firms operate at maximum technical efficiency, meaning they produce at the lowest possible cost per unit. This occurs because firms are forced to continually adjust their production methods to stay competitive and survive in the market. Maximizing average total costs of production or having positive economic profits would indicate that the market is not in long-run equilibrium.

Which of the Following Is Consistent with Long-Run Equilibrium for a Perfectly