Long- run equilibrium in a perfectly competitive industry is characterized by
A) falling costs.
B) internal economies of scale.
C) each firm producing at the minimum point on its LRAC curve.
D) rising costs.
E) an output level at which firms' SRATC curves are tangent to the downward sloping portion of their LRAC curves.

Question

Quizplus · Accepted Answer

In long-run equilibrium, firms in a perfectly competitive industry produce at the minimum point of their Long-Run Average Cost (LRAC) curve, ensuring no economic profits or losses, and maximizing efficiency.

Long- Run Equilibrium in a Perfectly Competitive Industry Is Characterized