Consider a perfectly competitive firm when its industry is in long- run equilibrium.In this case,

Question

Quizplus · Accepted Answer

In long-run equilibrium, firms are earning normal profits and price equals minimum short-run and long-run average total cost. This means that the firm is producing efficiently and cannot decrease its costs any further without sacrificing quality. Average fixed costs are at their minimum and economic profits are zero. Marginal revenue is equal to marginal cost, ensuring that the firm is maximizing profits. Therefore, the correct choice is E.

Consider a Perfectly Competitive Firm When Its Industry Is in Long-