If a perfectly competitive industry is in long-run equilibrium, the price of the product equals the minimum of:
A) marginal cost.
B) average total cost.
C) average variable cost.
D) fixed cost.

Question

Quizplus · Accepted Answer

In long-run equilibrium, firms in a perfectly competitive industry produce at the minimum point of their average total cost curve, where price equals average total cost.

If a Perfectly Competitive Industry Is in Long-Run Equilibrium, the Price