In the long run, perfectly competitive firms produce at the output level that has the minimum

Question

Quizplus · Accepted Answer

Perfectly competitive firms aim to maximize profits, which occurs when marginal cost equals marginal revenue. In the long run, they adjust their production to achieve the lowest possible average total cost, which corresponds to the point where marginal cost equals average total cost. Therefore, perfectly competitive firms produce at the output level that has the minimum average total cost.

In the Long Run, Perfectly Competitive Firms Produce at the Output