Suppose that the firms in the perfectly competitive oat industry are currently receiving a price of $2 per bushel for their product and there are constant returns to scale. The minimum possible average total cost of producing oats in the long run is $1 per bushel. Other things being equal, it follows that:

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In the long run, in a perfectly competitive market, firms will enter or exit the market until the price equals the minimum average total cost, which is $1 per bushel in this case.

Suppose That the Firms in the Perfectly Competitive Oat Industry